BS Assignment - Mamatha Gudla - Reg no: 1901016110324

For Case 1: Ford Motor Company:

1. Define and discuss Ford's business-level strategy (Hint: Porter’s Generic Model)

Ans. The Ford was one of the leading automobile company operating around the globe, with
line of automobiles offering by them with various brands like Ford, Lincoln, mercury, mazole,
volvo etc.,
Ford started its business in the early 1900’s and was also popular for its revolutionary
adoption of the assembly line method which helped to minimize the costs and increase the
productivity to attract the customers.
The Ford generic business strategy was changed over the period of time because
initially it followed the cost leadership strategy which is reducing the costs and offering the
products at lower cost to their customers. But in the meantime they were highly affected by the

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competition with rivals like Generic Motors.

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GM follows the brand differentiation strategy in which they offer a wide range of

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products. So, in order to hold the market the Ford also adopted the differentiation strategy along

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with the cost leadership and also Ford followed with the product innovation to gain the

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competitive advantage over the rivals.
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2. How can the company's value-chain activities be better linked, than now, to create better
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value for the company? (Hint: Porter’s Value Chain Model)

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Ans. Value chain analysis emphasizes that a firm must consider itself as a value creating
system and it is meant to deliver more values to the customer. The activities are the list of
stages from the design to the sales and services of a product.
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As the Ford company was initially successful with the concept of assembly line during
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the industrial revolution but later it resulted in incurring financial and market share losses with
the entry of rivals.
Following are some key aspects in which helps Ford to improve their value chain
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activities:
● R & D: Ford can focus more on innovations and technology to advance & design smart
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automobiles. Its advanced engineering technology can help them in introducing the
Hybrid type of models in automobiles.
● HR: We had seen that there are a very large number of members in leadership team
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which were replaced by the others but Ford has to review their complete structure and
reorganise them with a simple and flexible one.
● Technology & Development: Ford must focus on improving technology and also
strengthen them. If possible they can introduce AI in the assembly line on order to
reduce the costs and accuracy.
● Sale & Services: Ford's strength is its customers and they are the one who value the

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 services. So, in order to satisfy them and provide the quality they need at reasonable
price, which helps as a boost to sales and also the post sale services are the key to
evaluate and get feedback so, a wide range of services available also helps in
increasing the sales.
● Procurement: The supplies are the key to any organisation which helps in ease of
production, they might introduce policies like Just-In-Time so that handling costs will be
reduced. A wide range of suppliers will give the company a competitive edge in
bargaining & determining the price of the product.

3. In what ways can the company effectively manage customer relationships to increase
strategic competitiveness?

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Ans. The following are some areas in which they help to manage customer relationships

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effectively:

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● Communication with the customers: A communication doesn’t mean interacting with

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the customer. Inorder to be a successful in business one must know what the customer

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was expecting and their tastes & preferences helps in better production. Also there must
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be a proper feedback taken from them to review the product we offered.
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● Customer services: Before purchasing any automobile product every person will check
for the services available nearby. So, a proper maintenance and facilitation of service
stations at all the major cities/towns where the sales are done is a must.
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If there is no possibility for an own service station then an authorised service agent might
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also help in gaining the customer confidence.

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● Offering specialised services to the privilege/loyal customers: Every business will

cherish only with the loyal customers and these customers are needed to be given some
privileges such special services/privileges to the customers will strengthen the bond
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further.
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● Offers, rewards & loyalty programs: These types of programs not only helps to hold
the existing customers but also helps in gaining new customers.
● Expos and Events: Ford can organise these types of events so that they can take their
range of automobiles directly to the customers in which Q & A sessions, views and
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product specifications are discussed.

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● Media management: Now a days every person is trying to know a product through
internet so, a proper media must be provided by Ford to the public and customers in the
form of websites, social media handles, brochures etc.,
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4. Outline a rough competitor analysis. What can be learned about expected competitor

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 behaviour by using the model of competitive rivalry to understand Ford's situation?

Ans. Michael. E. Porter's five forces model competitive analysis states that competition may be
within the firm or outside the firm and such will pressure and effect the overall business.

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Initially Ford enjoyed a large share in the market but in the meantime it was highly affected by
the competitors and its own issues.
Around, at least 20+ firms compete in the U.S market of which Ford, GM, Toyota and
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Daimler Chrysler control more than 685 of the market and top six firms(including Nissan and
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Honda) control 83% of market share. So, let us see the effect of the above five forces of
competition on Ford in the auto industry.
● Threat from potential new entrant: As we had seen that the Ford lost it market share
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after the entry of its competitors. This was due to new product range cost, quality offered
by those new entrants.
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Even though the threat may be lower in this industry but still we must remember that
such new entrants will definitely be from highly reputed firms due to the investment
required so, their brand image might also affect the existing players in this industry.
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● Suppliers power of bargaining: Suppliers are the key aspects in determining the cost
of raw material and their inputs. Therefore industry attractiveness and profitability will
also be affected. Suppliers bargaining power impact the organisation in aspects like
switch over costs, ontime production supply etc.,
● Bargaining power of buyers: In any industry the bargaining power of buyers is very
high because ultimately they are the one who consumes the output, so one must verify

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 the aspects like price sensitivity buyers & value to the loyal customers wise decide the
pressure they exert.
So, the Ford must analyse and identify such pressure and also observe such may create
a conducive environment for the business growth.
● Threat of substitute products: This is what I have seen mainly in the case of Ford and
GM because GM provided a wide range of cars which threatened Ford to lose their
market share.
So, one must remember that the substitutes are major competitors in any industry
because they might give price 7 quality advantage, durability etc., when compared to the
existing ones.
● Rivalry among competitors: In this the competitors are compared to our others
constantly, even the people will research and compare the price, quality, features,
durability etc., of the variants of cars supplied by Rivalry companies.
They might influence by differentiate the products & cost advantage.

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5. Why is there a need for a new HR strategy and how Mullay is planning to blend the HR

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strategy with worldwide manufacturing operations strategy.
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Ans. As we know the Human Resources are the key to the success of every organisation. Their
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skills, competencies and attributes will influence the decisions & productive capacity of an
organisation.
But here in the case of Ford the management structure was a complex one with highly
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bureaucratic due to its six layered management scheme based on their pay. Also the
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management team consists of the Ford family members who yielded great power in board
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meetings.
So, with all those it looks difficult to handle any situation because the decision must pass
on the hierarchy and finally it must be decided in board so, in order to simplify the company's
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leadership Alan mullay tried to lean size the management team so that decisions will be
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processed with less time and he also tried to conduct meetings with its core managers of each
product line, regularly so that the issues with the labour forces/teams will be reduced effectively.
Due to heavy losses he also planned to eliminate 40% of the workforce by 2008. So, it
may reduce the manufacturing costs and lead to an effect on the profitability of the organisation.
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For Case2: Ready-to-drink Beverage Habits and Ecology

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 1. What is the importance of handling huge quantities of waste generation from beverages at
least in all Metros, Mini Metros, Big and Medium Towns in India, as a part of ecology macro
environment responsibilities on an organisation? (Hint: PESTEL Factor)

Ans. The key component for handling beverages is its packing, also at the same time it has
become a huge problem in handling it after the usage of such beverages. As we can see now a
days in the public places like roads, parks, nearby shops etc., everywhere there will be a thrown
out waste of used beverages cans, tins, bottles, packets etc.,
This wastage piled up and thrown at the dumpyards, causing the pollution in various
forms. So, in order to avoid such things a waste management is necessary for them and also
the initiation has to be taken by the organisations into the public. The organisation has to
include the echologic sustainability as a part of their strategic management and has to
encourage their personnel from top to bottom levels of the organisation to follow them.
As we can see the psychology of a human being will be they encourage a initiation but
fails to follow it due to many reasons like laziness, trust issues, old habits etc., So, in order to

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encourage and make them a part of the sustainability, the organisation must give wide range of

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campaigns, rewards for recycling practices etc.,

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There must be proper availability of collection points of the waste collection for recycling,

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it is not possible then the organisation must try to use the other alternatives available for such

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replacement of packing of beverages. For example, previously there used to be glass as
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packing for cold drinks but now they are supplied in plastic and tetra packs.
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The manufacturing companies might go for the refilling vending machines through which
the bottles or glasses can be used again by refilling them. Nowadays due to extensive usage of
technology like IoT-connected devices one can serve through machines without even investing
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personnel.
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Due to plastic and other waste the environment surrounding us was getting damaged
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because the plastic gets decomposed very late when compared to other materials. Even though
the government was campaigning with events like Swachh Bharath, Go Green etc., there is
hygiene from both the corporate and public end so some string at legal rules needed to be
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established. So, that everyone will follow due to the bindy of law.
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Even though the organisation tries to educate the plastic for such green initiatives for
ecological balance, still there are some people who think that the products with sustainability are
of lower quality and less sustainability pleasing and expensive. As we consider some branding
organisations focus only on their innovative, taste & preferences to attend the target people so
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that it helps in their sales but they might overlook/disregard the green credentials so, such
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activities have to be assesses and rectified.

The organisation must help the consumers to shape positive habits in the form of using
prompts providing feedback & offering incentives. By these initiatives the organisation can
handle the huge waste of beverages in order to maintain the ecological balance. So that the
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future of generation will be in peace & comfort.

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 2) Can a “Refill model whereby selected important stores in various localities is taking care of
refilling” in beverages products work? What kind of Retail Vendor Incentives may be needed to
be given to administer this model? What are the practical difficulties in this distribution strategy?

Ans. Refill model was a good idea because it will reduce the wastage by more than 50%
because of reusing the empties. But in order to implement this the organisation must motivate
the retailers.
The retailers must be tuned by proper training & regular communication. There must be some
incentives to them and the most popular incentive method is rewards based on the levels of
targets. Ie., if the vendors reached a particular level of target then incentive will be unlocked, so
the more the target reaches, the more incentives(it is win - win - strategy). Also loyalty points in
the form of offers/discounts to the customers who refill are also to be given. But the following
are some of the practical difficulties in this distribution strategy.
● The retailers might feel to lose the business due to downtime incase of repairs/delays of

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such machinery.

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● The incentives provided might be less than the normal sales profit they gain

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● Customers might not be interested in such a type of practise of refilling.

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● The refilling item provided might be lost by the customer so, another item leads to an

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increase in wastage.
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● After the usage but before the refilling of the beverages the empty can/bottle might
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become dirt/unhygienic so, it may lead to the health concern of the public.
● In order to run a refill model a proper supply of inputs are necessary, so even a lit delay
might lead to loss of business especially in case of unforeseen events.
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3) Can a “IoT-connected refill vending machines dispensing “a part of business model work well,
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particularly in middle- and upper-class localities? What could be the difficulties?

Ans. IoT is an acronym that stands for the Internet of Things. Any device that works on IoT must
be on wifi or bluetooth or ethernet. An internet is a must and should in order to operate a Iot
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connected device. Here IoT-connected refill vending machines dispensing a part of business
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model will help the organisations for reduction in personnel and also they will enable to pay
through contact less online payments through scanning of cards or wallets, QR codes etc.,
As we can see that all the benefits that arise in refilling through retail vendors are also
available in IoT-connected refill vending machines but in this we need to pay any
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incentives/rewards to any middle men, only a proper maintenance of stock of inputs are
necessary. In this IoT enabled device the stock sold & left updated regularly so that proper
maintenance and usage will be done.
However, the main problem occurs if there might be remote areas where the internet is
not available or fluctuations in the signals. In the middle and upper class locations the people

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 might not be interested in refilling facilities because many people appreciate and encourage the
change of sustainability but they might not follow the practise either may be due to laziness or
due to availability of cheaper alternative or will do what is required attitude.
Generally in these classes of areas people are busy in their work. So, a positive
response through their actions with intentions expressed might not be possible.

4. Interact with about 3 or 4 big or medium size vendors in your selected town/locality and
enunciate their response to your preferred solution. Mention the Name of the Town and retailer
Shop Name in your answer.
Ans. The following are some of the views from the vendors in my area regarding my preferred
solution for the sustainability of ecological balance.
1) Good Luck Bakery, Labbipet, Vijayawada:
Generally they sell bakery items, cooldrinks in their shop. So, I asked them what

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they will do with the leftovers. They said most of the customers leave the empties on the

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table they eat and some will throw them in the dustbin, so they collect waste and give

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them to the municipal labour every day.

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So, I clearly explained them regarding the effects of non- recycling the waste and

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also suggested they collect the plastic and tetra packs separately and asked to drop
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them with the local waste collection point available. Also, suggested them to serve the
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beverages on a reusable containers.
If possible serve them on a table so that while cleaning them they can collect and
divide easily. To be surprised they agreed to do this because on and around 200+
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containers are getting thrown by them everyday as their majority of customers are
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students. So, they come and go hurriedly in between breaks so the wastage will be high
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and it will be huge in the long term for damaging the ecology.

2) Sri Sai Foods & Catering, Bus Stand, Vijayawada:

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While travelling regularly I used to have some small bites of food at this place.
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So, I observed that they are managing a restaurant & tiffin center separately and most of
the passengers are learning the emptied beverage bottles & paper plates on the table,
later the cleaners are throwing them in a dustbin.
I approached the person at the counter and asked him about the waste. That
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person in response said that every day they collect all the waste from dustbins and
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separate them as dry and wet wastes. Later it will be given to a waste collective person
who sells the plastic to a waste collecting person who sells the plastic and metallic cans
for recycling and throws the remains of food in a dump yard.
I really appreciated them for such activity because in a rush place like Bus stand,
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hundreds of people will have food so a heavy load of waste was produced and off not
properly treated it will be a threat to the destruction of ecology.

3) Manikanta Departmental store, labbipet, Vijayawada:

The owner of this shop was also the owner of my flat in which I was rented. He

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 regularly piles up the carbon boxes and plastic covers and other wastage in a store
room, so I went on to ask him what he did with all these stocks. He said the carbon
boxes and plastic covers will be sold to a nearby waste collection point.
But, I had seen him throwing the empty beverages and milk packets in a dustbin
and these will be thrown into the dumpyard by the municipality employees. So, I tried to
explain to him regarding the consequences of improper disposal of plastic &
tetrapackings waste. Also suggested he sell those empties to the regarding agent or
otherwise give them back to the relevant distributors who will send them to their
companies recycling point.

4) Laxmi Soda point, Labbipet, Vijayawada:

This is the place where the soda’s are sold by a vending machine but the owner
was disposing the waste into a dump and also it was seen that they are not following any
refilling system, If a customer asked for another glass of soda also the vendor is
providing him it in another glass.

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I was started with those practices because it was a huge threat to the ecology

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because improper handling & disposal of waste lead to endangering future generations.

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So, i explained the refilling concept and the recycling uses, also such selling of waste

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also leads to a minimal amount of return. So, the owner agreed and also thanked me in

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explaining about the effects of ecological imbalance and also suggesting him a solution.
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5. What kind of re-orientation is needed to be done by the organisation in terms of product

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strategy along with integrated marketing communication strategy? (Hint: Functional Level
Strategy)
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Ans. Currently a production strategy is related to the R & D issues, production system,
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operational planning & central departments. This strategy affects the nature of
products/services, the markets to be served and the manner in which they are to be served. An
integrated marketing communication is aimed to unify the different marketing methods such as
direct marketing, mass communication & one-to-one marketing.
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Here in integrated marketing communication the tools used are like personal selling,
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advertisements, sales promotion, sponsorships etc, In order to redirect the organisation must
focus on the functional level strategies such as financial strategies, marketing strategies,
production, HR and R&D strategies.
A functional level, strategies are the actions assigned to various departments that
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support the business level strategy and corporate level strategy. These strategies specify the
outcomes an organisation wants to see & achieve the daily operations of specific
departments/functions of a business.
A proper direction must be provided to the functional managers about the plans &
policies to be adopted for efficient implementation of corporate strategy. The functional

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 strategies are based on the functional capability factor. These are made within the guidelines
set at higher levels.
So, the organisation has to reiterate their existing policies to find the best fit of marketing
& production strategies, so that they can provide a better & sustainability products and also they
can promote the ideology to the public at large.

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