SEMESTER-II

Subject Name Study COUNTRY Roll Number (Reg.No.) Student Name : Business Transformation : : :

INSTRUCTIONS a) Students are required to submit all three assignment sets. ASSIGNMENT Assignment A Assignment B Assignment C b) c) d) e) DETAILS Five Subjective Questions Three Subjective Questions + Case Study 40 Objective Type Questions MARKS 10 10 10

Total weightage given to these assignments is 30%. OR 30 Marks All assignments are to be completed as typed in word/pdf. All questions are required to be attempted. 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 :

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( ) Tick mark in front of the assignments submitted Assignment Assignment B Assignment C A

Business Transformation Assignment A

Q . 1 B u s i n e s s t r a n s f o r m a t i o n b u i l d s o n 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.

A s s i g n me n t 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.

Case Study

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 counterin tuitive, 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.

Case Study Questions

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. Assignment C (40 Multi ple choice questions)

A tendency of individuals to adopt the perspective of the group as a whole. It occurs when decision makers dont question 1 the underlying assumptions.

Think Tank

Group Think

Out of Box Thinking

Questionable Thinking

Clusters of firms within an industry that share certain critical asset configurations and follow 2 common strategies.

Strategic Business Units

Strategic Groups

Sectoral Groups

Rival Groups

Focus the firms efforts and 3 resources in one industry.

Diversification

Concentration

Integration

Outsourcing

The costs incurred when a buyer switches from one supplier to 4 another.

Fixed Costs

Switching Costs

Transfer Cost

Variable Costs

Aggressiveness in Pricing by a firm against its rivals with the intent of driving them out of 5 business.

Penetration Pricing

Predatory Pricing

Skim Pricing

Mark Up Pricing

Factors that reduce entry of new players or entrants into an 6 industry.

Exit Barriers

Entry Barriers

Mobility Barriers

Defensive Barriers

To monitor, evaluate and disseminate information from the external environment to key 7 people within the firm.

Information Sharing

Environmental Scanning

Data Churning

Data Mining

An unfavorable trend or development in the firms external environment that may lead to an erosion of the firms 8 competitive position.

Weaknesses

Threats

Strengths

Opportunities

statements indicating the desired strategic future for the 9 firm

Purpose

Vision

Mission

Objective

The rate over time at which 10 innovations are copied by rivals

Learning Curve

Diffusion Curve

Life Cycle Curve

Innovation Curve

Looking inside the business and identifying strengths and 11 weaknesses of the firm

External Appraisal

Internal Appraisal

SWOT Analysis

ETOP Analysis

Each product and enterprise is considered as an individual responsibility center for purposes 12 of strategy formulation.

Parenting Anlaysis

Portfolio Analysis

Pareto Analysis

PEST Analysis

Individuals and groups inside and outside the firm who have an interest in the actions and 13 decisions of the firm.

Shareholders

Stakeholders

Human Capital

Directors

A checklist of questions that provide an assessment of a firms strategic position and 14 performance.

Strategic Schedule

Strategic Audit

Strategic Questionnaire

Strategic Accounting

Unplanned strategy that emerge 15 from within the organization

intended Strategy

Emergent Strategy

Deliberate Strategy

Realised Strategy

The development of long-range plans for the management of environmental opportunities and threats, in light of the firms 16 strengths and weaknesses.

Strategy Formulation

Strategy Analysis

Strategy Implementatio n

Strategy Evaluation

Compares performance with desired results and provides the feedback for management to evaluate results and take 17 corrective action.

Strategy Controls

Strategy Objectives

Strategy Actions

Strategy statements

A strategy serving a specialized 18 part of the market

Focus

Cost Leadership

Differentiation

Best Solution Provider

The process by which strategies and policies are put into action through the development of programs, budgets, and 19 procedures.

Strategy Implementation

Strategy Evaluation

Strategy Formulation

Strategy Analysis

Fit between what the environment wants and what the 20 firm has to offer

Strategic Fit

Strategic Direction

Strategic Disparity

Strategic Balance

Where one firm has full ownership and control over all the stages in the production of a 21 product

Full integration

Taper Intergration

Quasi Integration

Horizontal Integration

A portfolio planning model based on analysing the relative market share and market growth rates for a companys products and/or 22 strategic business units 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 23 as possible. 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 24 new businesses.

BCG Matrix

Probability Matrix

PIMS Matrix

GE Matrix

Cash Cows

Dogs

Stars

Question Marks

Question Marks

Cash Cows

Dogs

Stars

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 25 also known as It is a collection of businesses ranging from primary producers, processors, distributors and retailers that progressively create consumer value in a specific 26 market segment. 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 27 hold the company in high regard.

Multifactor Portfolio Analysis Model

ETOP Model

Hofer Model

Ansoff Model

Value chain

Supply Chain

Distribution Chain

Food Chain

Goodwill

Patents

Copyrights

Competencies

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 28 of a process as new input. 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, 29 social standing

Feedback

Reverse Logistics

Reverse Information

Relative Input

Intangible Resouces

Tangible Resources

Valuable Resources

Human Resources

It is an organization that is able to adapt to change, move forward, and transform itself by acquiring new knowledge, skills, 30 or behaviors.

Learning Organisation

Lean Organisation

Flat Organisation

Tall Organisation

It is a cost/benefit comparison of the cost of an investment or activity compared with the financial and/or non-financial 31 benefits that result.

Cost of Return

Cost of investment

Break Even

Return on Investment

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 32 copy A _________ should target market segments that are less vulnerable to substitutes or where a competition is weakest to earn above-average return on 33 investment. The Primary Activities of the Value Chain which are the transformation activities that change inputs into outputs that are sold to customers. Here, your 34 operational systems create value. These are all the processes related to receiving, storing, and distributing inputs internally. Your supplier relationships are a 35 key factor in creating value here. 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 36 advantage. Restitching business portfolio according to changes in market requirements allows corporate managers to focus on the best 37 market opportunities. 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 38 internal alliances in enterprise

Best Solution Strategy

Focus strategy

Cost Leadership Strategy

differentiation strategy

Best Solution Strategy

Cost Leadership Strategy

differentiation strategy

focused strategy

Operations

Logistics

Marketing

Customer Service

Inbound Logistics

Outbound Logistics

Warehousing

Transportation

Infrastructure

Human Resource Management

Procurement

Research and Technology

Patching

Co evolving

Regeneration

Refocus

Co-Evolution

Diversification

Differentiation

Business Splits

It is usually a restructuring plan and is adopted when a turnaround has been attempted but has proved to be unsuccessful or it 39 was ignored.

Divestment

Captive Company

Bankruptcy

Stability

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 40 sound decisions to be made

Action with Intelligence

Innovation with Business Intellegence Intelligence

Business Decisions