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Question A1 – Ansoff and Porter 5 Forces
“If you’re a developer interested in web technologies and mobile, now is the time to try out Firefox OS,” Peters said.
The operating system, she said, is an effort to “keep the web open” and “help make sure the power of the web is available to everyone – even on mobile devices”.
By using the open platform, she said, “you’re not locked in to a vendor-controlled ecosystem. You can distribute your app through the Firefox Marketplace, your own website, or any other store based on Mozilla’s open app store technology.” (AFP, 2013)
Questions:
1) Is the development of an operating system for mobile devices by Firefox an example of Ansoff’s product development of Ansoff’s market development? Discuss. (3 Marks)
2) Would the development of Firefox Mobile Operating System affect the ‘barriers to entry’ into the App development business? (2 Marks)
3) What effect will the Firefox Mobile Operating System have on the ‘Rivalry’ in the mobile operating system industry? (2 Marks)
4) Compare and contrast the ‘barriers to entry’ for the App developer in the Apple (walled garden) approach – developing a closed ecosystem with the Firefox open approach to the internet and mobile marketplaces? (3 Marks)
Question B 2. Specialist
The second archetype was the “Specialist,” a CSO chosen for highly specialized skills that were not present within the organization.
A classic example of a Specialist CSO is someone brought aboard to maintain a mergers-and acquisitions capability.
Another common focus for Specialists is dealing with government or regulations.
This is particularly evident in highly regulated industries in which policy decisions can have a critical impact.
What separates Specialists from other CSO archetypes is their level of segregation from business units. They frequently act in a secretive manner, with only the CEO and other relevant C-level executives
aware of their actions. Their activities — mergers and acquisitions, or lobbying government or regulatory bodies — are inherently sensitive and as such are kept from the organization at large. The effectiveness of these CSOs was dependent upon both their specialized skills and their contacts outside the organization.
As such, the majority of Specialists were recruited from investment banks, regulatory bodies or government. In contrast to the Internal Consultant archetype, Specialists were more likely to move to another organization in a similar role — thereby continuing to leverage their capabilities and connections.
(Powell, 2012)
Questions:
1) Discuss how a specialist style Chief Strategy Officer focussed on Mergers and Acquisitions would use the BCG matrix. (5 Marks)
2) Discuss how a specialist style Chief Strategy Officer focussed on Mergers and Acquisitions would use product life cycle analysis. (5 Marks)
Question B 4. Change Agent
The final archetype was the “Change Agent.” As with Specialists, Change Agents focused on execution. In contrast to Specialists, Change Agents acted through the business units as facilitators to ensure that strategies were enacted with fidelity. One such CSO described the role as “an enabler. Sometimes the gears don’t mesh in an organization. And you’re there to try and bring the people together.”
Change Agents spent the majority of their time with business unit heads working on implementation. As one said, “Where most time goes is once you’ve done the business planning or once you’ve done the corporate strategy, you then end up with a series of conclusions and action points, and actually what I spend most of my time doing is then trying to implement the decisions that we arrive at toward the end of those two processes.”
As with Coaches, the success of the Change Agents depends upon their knowledge and network within the organization. As such, the Change Agent also tends to be recruited from within, generally from among people in senior roles with the business units. Change Agents also tend to remain in their role for an extended period — often working for a number of CEOs during their tenure.
Questions:
1) Rumelt talks about inertia (routine, culture) as a the unwillingness or inability of an organisation to adapt to changing circumstances. Discuss how the change agent can help the organisation to adapt. (5 Marks)
2) Rumelt talks about entropy as the weeds and decay that flouirish in poorly managed businesses. What can the change agent do to bring focus back to the organisation.? (5 Marks)
QUESTION B5 – Choice of Strategy
THE global head of accountancy firm KPMG says a second wave of raw materials demand from India and Brazil will support the domestic economy towards the end of the decade after an expected slowing of demand from China, which has already been flagged by big miners BHP Billiton and Rio Tinto. (Chambers, 2013)
To Secure this growing iron ore trade with India, what strategy should Rio Tinto pursue:
Ø Cost Leadership
Ø Differentiation
Ø Focus
Question:
Explain why each alternative is attractive or not attractive with full support for your recommendation. (10 Marks)
QUESTION B6 – Value Chain
The graphic below portrays Michael Porter’s ‘value chain’.
Consider the value chain for Zara (International clothing manufacturer).
Questions:
Find the strength & Weaknesses based on the value chain and which department is the strongest in Zara company and which one is not and why? (10 Marks)
Explain all of the questions answers with real life example.
