Assignment Brief

BA (Hons.) International Business & Finance

Academic Year 2019-20
Module Information:
Qualification: BA (Hons.) International Business & Finance

Module Code & Title: BAIBF 10018 Strategic Management and Business Analysis

Assignment Title: Individual Report

Component Weighting: 40%

Date of Issue:26-09-2019 Due date:03-10-2019, 5 PM

To be filled by the student:

Student ID: 4123BA17

Date of Submission:3-10-2019

*All work must be submitted on or before the due date. If an extension of time to submit work is required, a Mitigating
Circumstance Form must be submitted.

Has an extension been approved? Yes No

If yes, please provide the new submission date ….…/.…./……., and affix appropriate evidence.

First Marker: Second Marker:

Agreed Mark: Refer: Yes / No

General Guidelines
1. A Cover page or title page – You should always attach a title page to your assignment. Use
previous page as your cover sheet and be sure to fill the details correctly.
2. This entire brief should be attached in first before you start answering.
3. All the assignments should be prepared using word processing software.
4. All the assignments should print in A4 sized paper, and make sure to only use one side
printing.
5. Allow 1” margin on each side of the paper. But on the left side you will need to leave room for
binding.
6. Ensure that your assignment is stapled or secured together in a binder of some sort and send
the Softcopy of your final document to assignment.bahons2016@gmail.com
7. The submission of your work assessment should be organized and clearly structured.

Word Processing Rules

1. Use a font type that will make easy for your examiner to read. The font size should be 12
point, and should be in the style of Times New Roman.
2. Use 1.5-line word-processing. Left justify all paragraphs.
3. Ensure that all headings are consistent in terms of size and font style.
4. Use footer function on the word processor to insert Your Student ID, Name, Subject, Module
code, and Page Number on each page. This is useful if individual sheets become detached
for any reason.
5. Use word processing application spell check and grammar check function to help edit your
assignment.
6. Ensure that your printer’s output is of a good quality and that you have enough ink to print
your entire assignment.

Important Points:
1. Check carefully the hand in date and the instructions given with the assignment. Late
submissions will not be accepted.
2. Ensure that you give yourself enough time to complete the assignment by the due date.
3. Don’t leave things such as printing to the last minute – excuses of this nature will not be
accepted for failure to hand in the work on time.
4. A printed version of the assignment needs to be submitted physically along with ansoft
copymailed to the email mentioned above on or before the stated deadline.
5. You must take responsibility for managing your own time effectively.
6. If you are unable to hand in your assignment on time and have valid reasons such as illness,
you may apply (in writing) for an extension.
7. Non-submission of work without valid reasons will lead to an automatic REFERRAL. You will
then be asked to complete an alternative assignment.
8. Take great care that if you use other people’s work or ideas in your assignment, you properly
reference them in your text and any bibliography, otherwise you may be guilty of plagiarism.

Statement of Originality and Student Declaration

SWADIQ P S. 4123BA17 BAIBF 10018 Strategic Management and Business Analysis

I hereby, declare that I know what plagiarism entails, namely to use another’s work and to present it
as my own without attributing the sources in the correct way. I further understand what it means to
copy another’s work.
1. I know that plagiarism is a punishable offence because it constitutes theft.
2. I understand the plagiarism and copying policy of the University of the West of Scotland.
3. I know what the consequences will be if I plagiaries or copy another’s work in any of the
assignments for this program.
4. I declare therefore that all work presented by me for every aspect of my program, will be my
own, and where I have made use of another’s work, I will attribute the source in the correct
way.
5. I acknowledge that the attachment of this document signed or not, constitutes my agreement
on it.
6. I understand that my assignment will not be considered as submitted if this document is not
attached to the attached.

Student’s Signature: Date16/10/2019:

TASK

1. Explain McKinsey 7S Model

SWADIQ P S. 4123BA17 BAIBF 10018 Strategic Management and Business Analysis
2. Explain Lewinz Forcefield Analysis
3. Discuss in detail alternative Strategic Business Unit (SBU) performance measures, including SVA
and EVA
4. Select a company and explain the Value Chain of that company.
5. Explain Enterprise Asset Management
6. Create a business of your own and develop an ebusiness strategy.
7. Explain the difference between Data warehousing and Data Mining.

Total Words:2500 Words

McKinsey 7S Model
SWADIQ P S. 4123BA17 BAIBF 10018 Strategic Management and Business Analysis
  Strategy:
The strategy is the plan deployed by an organization in order to remain competitive in
its industry and market. An ideal approach is to establish a long-term strategy that
aligns with the other elements of the model and clearly communicates what the
organization’s objectives and goals are
 Structure:
The structure of the organization is made up of its corporate hierarchy, chain of
command, and divisional makeup that outlines how the operations function and
interconnect. In effect, it details the management configuration and responsibilities of
workers.
 Systems:
Systems of the company refers to the daily procedures, workflow, and decisions that
make up the standard operations within the organization.

The soft elements are as follows:

 Shared values:
Shared values are the commonly accepted standards and norms within the company
that influence and temper the behavior of the entire staff and management. This may
be detailed in company guidelines presented to the staff. In practice, shared values
relate to the actual accepted behavior within the workplace
 Skills:
Skills comprise the talents and capabilities of the organization’s staff and
management,which can determine the types of achievements and work the company
can accomplish. There may come a time when a company assesses its available skills
and decides it must make changes in order to achieve the goals set forth in its strategy.
 Style:
Style speaks to the example and approach that management takes in leading the
company, as well as how this influences performance, productivity, and corporate
culture.
 Staff:
Staff refers to the personnel of the company, how large the workforce is, where their
motivations reside, as well as how they are trained and prepared to accomplish the
tasks set before them.

SWADIQ P S. 4123BA17 BAIBF 10018 Strategic Management and Business Analysis

 Lewin’s Force Field Analysis

Change is very difficult to accept for people and they would much rather see that everything
remains ‘the same’. This also applies to companies and organizations where it is important to
implement changes.

After all, inertia is tantamount to decline and in order to generate as little resistance as
possible, Kurt Lewin developed the Force Field Analysis (FFA). This is a method in which a
team or an organization can predict in advance what the expected resistance will be to the
proposed change.

Change within an organization can be effected in different ways. For example a

reorganization, the introduction of a new technology, introduction of new machines,
adjustment of production or changes in work processes. Using Force Field Analysis, it
becomes clear what forces could possibly influence the change.

SWADIQ P S. 4123BA17 BAIBF 10018 Strategic Management and Business Analysis

These might include resistant people, inoperative processes and structures, negative attitudes,
habits, insufficient knowledge and skills. All these force may have an impact on the
individual employee, a department or the entire organization.

Possible obstacles

Force Field Analysis is a powerful strategic instrument that is used to understand what is
needed for change to take place in both a business and a personal environment. Force Field
Analysis makes clear what the possible obstacles are that could hinder change. It enables an
organization to become aware of the difficulties that may be involved in the envisaged
change. By consulting thoroughly with each other, Force Field Analysis ensures that teams
will feel responsible. They will be better able to implement the change and to identify and
eliminate any obstacles prematurely.

Driving and restraining forces

Force Field Analysis distinguishes driving forces and restraining forces. The restraining
forces are obstacles that get in the way of change. They have an impact on the change and
they will try to restrain this. The driving forces support change and encourage positive
effects.

Force Field Analysis can be used as a tool to understand why, for example, the introduction of
a new working method does not work which makes it possible to draw up an improvement
plan. The Force Field Analysis also contributes to the improvement of internal
communication.

SWADIQ P S. 4123BA17 BAIBF 10018 Strategic Management and Business Analysis

 STRATEGIC BUSINESS UNIT PERFORMANCE
MEASURES
A Strategic Business Unit (SBU) is a unit of the company that has a separate mission and
objectives and that can be planned independently from other company businesses.

SBU PERFORMANCE MEASURES

Economic Value Added (EVA)

EVA is an estimate of a firm’s economic profit-being the value created in excess of the
required return of the company’s investors. It is calculated as the difference between the Net
Operating Profit After Tax and the cost of financing the Firm’s capital.

EVA = NOPAT ( Total Assets – Current Liabilities )*WACC

Shareholder Value Analysis (SVA)

SWADIQ P S. 4123BA17 BAIBF 10018 Strategic Management and Business Analysis

Shareholder value is the total return to the shareholders in terms of both dividends and share
price growth, calculated as the present value of the future free cash flows of the business
discounted at the weighted average cost of the capital of the business less the market value of
its debt.

ADVANTAGES OF EVA/SVA APPROACHES

 Adjustments made to profit effectively mean we are looking at cash-flow based

measures.
 Consistent with NPV so should ensure better goal congruence between divisional
performance and maximising shareholder value.
 Cost of financing emphasised.

DRAWBACKS OF THE EVA/SVA SYSTEMS

 Uses accounting data which has been prepared for other purposes and involves
subjective provisions and estimates.
 It ignores items that don’t appear on balance sheets such as brands, staff and inherent
goodwill.
 Costly to maintain and resistance is usually high when first deployed.
 Assumes value can be measured in money terms.

SWADIQ P S. 4123BA17 BAIBF 10018 Strategic Management and Business Analysis

 PORTER’S VALUE CHAIN ANALYSIS OF
Google value-chain analysis is an analytical framework that assists in identifying business
activities that can create value and competitive advantage to the business. Figure 1 below
illustrates the essence of Google value chain analysis.

Google Primary Activities

Google Inbound logistics

It can be argued that Google generates the greatest value in inbound logistics activities
compared to other activities. Google’s core business is search. Internet users use Google’s
search to find information they need, therefore the list of content generated as search results
can be specified as ‘product’ provided by Google. The content Google generates as search
result is created by private and organizational internet users and it comes to Google free of

SWADIQ P S. 4123BA17 BAIBF 10018 Strategic Management and Business Analysis

charge. Therefore, due to unique aspects of Google’s business model there is no inbound
logistics costs for its core search business.

Google also uses an extensive range of hardware, technological equipments and tools to
conduct its business operations. The internet giant does not reveal the details of its supply-
chain management and inbound logistics to the public. Google maintains a dedicated supplier
site, where suppliers can submit invoice for payment, check invoice status and deal with a
range of other administrative aspects of their cooperation with the company in a convenient
manner.

Google Operations

Google operates via more than 70 offices in more than 40 countries internationally. Google
offices are famous for their creative design and the presence of distinctive features such as
sharing cubes, video games, pool tables, pianos, cafes and others. Google headquarters in
Mountain View, California consists of about 4.8 million square feet of office and building
space, along with about 15 acres of land that can be ground for more office space in the
future.

The major source of value in Google’s operations can be specified as the company’s
technological capabilities in general and its advanced search algorithm in particular.

All spheres of Google’s operations are guided by its organizational culture based on
challenging the status quo and adopting an unconventional approach in getting things done.
However, there are views that due to its rapidly increasing size, Google has to develop more
policies and procedures and become more bureaucratic with negative implications on the
level of entrepreneurial spirit in the company.

Google Outbound logistics

Online search and integration of advertisements into search results represents Google’s core
business and there is no outbound logistics associated with running this business. Google also
sells physical technological products such as Smartwatches, Nexus Phones, Chromecast,
Chromebooks, technological accessories and other products via its website
www.store.google.com.

SWADIQ P S. 4123BA17 BAIBF 10018 Strategic Management and Business Analysis

In 2015 Google also opened its first fully-branded physical store in London, the Currys PC
World store on Tottenham Court. “In addition to showcasing Google merchandise—
Chromebooks, Chromecasts, Android phones, and so on—the space includes a “Doodle
Wall” for customers to scribble on with digital spray paint, a “Chromecast Pod” for movie
viewing, and a “Portal” for touring the planet via Google Earth

ENTERPRISE ASSET MANAGEMENT

Enterprise Asset Management (EAM) is the process of managing the lifecycle of physical
assets to maximize their use, save money, improve quality and efficiency, and safeguard
health, safety and the environment.

FUNCTIONS OF EAM SOFTWARE

 Asset lifecycle management

1. Design
2. Construction/production
3. Disposal
4. Warranty management
 Supply change management
1. Demand planning
2. Inventory management
3. Materials management
4. Procurement
 Core EAM
1. Analytics
2. Asset registry
3. Compliance
4. Financials
5. Master data management

 Monitoring
1. Internet of things
2. Mobility
3. Operational technology
4. Sensors
 Maintenance planning and scheduling
1. Preventive and predictive maintenance
2. Labour management,HR and payroll
3. Project management
4. Work orders

SWADIQ P S. 4123BA17 BAIBF 10018 Strategic Management and Business Analysis

 E-BUSINESS STRATEGY
An e-business strategy defines a long-term plan for putting in place the right digital
technology for a company to manage it’s electronic communications with all partners-that’s
internal through the intranet and externally through to customers, suppliers and other
partners.

SWADIQ P S. 4123BA17 BAIBF 10018 Strategic Management and Business Analysis

DIFFERENCE BETWEEN DATA WAREHOUSING AND
DATA MINING

DATA WAREHOUSING DATA MINING

 A data warehousing is database  Data mining is the process of
system which is designed for analyzing unknown patters of data.
analytical instead of transactional
work.
 Data warehousing is a method of  Data mining is a method of
centralizing data from different comparing large amounts of data to
sources into one common repository. finding right patterns.
 Data warehousing is a process which  Data mining is usually done by
needs to occur before any data mining business users with the assistance of
can take place. engineers.
 Data warehousing is the process of  Data mining is considered as a
pooling all relevant data together. process of extracting data from large
data sets.
 In the data warehouse, there is great  The Data mining techniques are never
chance that the data which was 100% accurate and may cause serious
required for analysis by the consequences in certain conditions.
organization may not be intergrated
into the warehouse. It can easily lead

SWADIQ P S. 4123BA17 BAIBF 10018 Strategic Management and Business Analysis

 to loss of information.
 Data warehouse allows users to  Data mining techniques is the
access critical data from the number identification of errors which can lead
of sources in a single place. to losses. Generated data could be
Therefore, it savers time of retrieving used to detect a drop-in sale.
data from multiple sources.

SWADIQ P S. 4123BA17 BAIBF 10018 Strategic Management and Business Analysis