ManagementTheor

yandPr
act
ice

December2021Exami
nat
ion
Quest
ionNo1.Cany
oudoaSWOTAnal
ysi
sofany1I
ndi
ancompanyofy
ourchoi
ce
deal
ingi
nFMCG?(
10Mar
ks)

Ans1.

I
ntr
oduct
ion

I
TCLt
d.i
sacol
ossalwi
denedpur
chasermer
chandi
seassoci
ati
oni
nIndi
awi
th138
y
ear
sofl
egacyanddr
ivei
nthebusi
ness.Theassoci
ati
onmar
ket
sthi
ngsundersi
x
gr
oupi
ngs;Ci
gar
ett
es,Ci
gar
sandPi
pes,Gol
denTobaccoandPr
oduct
s,Bi
diPr
oduct
s,
agr
ibusi
nessandFoodSer
vices.Thi
smakesi
toneofI
ndi
a'
sgener
all
yset
tl
edandbest
t
otal
s.

I
tsbusi
nessappr
oachr
eli
esuponmar
ket
-dr
ivenf
ramewor
ksf
oraccept
abl
etur
nof
ev
ent
s.I
tof
fer
spr
efer
redt
hingsandcust
omerhel
pov
eri
tsbuy
erst
oremai
nthe
pi
oneeramongpl
ayer
sini
tsi
ndust
ry.

Thoughtandanal
ysi
s

SWOTanal
ysi
sisav
aluabl
egadgett
osur
veyt
heci
rcumst
anceofanassoci
ati
on,and
I
TCLi
mit
edi
snoext
raor
dinar
ycase.I
tbasesonSt
rengt
hs,
Weaknesses,
Oppor
tuni
ti
es,
andThr
eat
sforassoci
ati
onst
ofost
ert
hei
rpar
toft
hegener
albusi
ness.Whataboutwe
hav
easi
gni
fi
cantl
eapi
ntoi
t.
Char
act
eri
sti
cs:
ITCLI
MITEDSWOTANALYSI
S

• Br
andI
mage-
ITCi
sar
ecor
dedassoci
ati
ont
hatsi
tuat
ionsamongt
he30most
si
gni
fi
cantov
eral
lbr
ands.I
tisamongt
hebest10associ
ati
onsi
nIndi
atot
heext
ent
mar
ketcapi
tal
i
zat
ionandi
samongt
hef
undament
al8outof2,
646associ
ati
onsi
nthe
BSE500I
ndex.I
TCi
sthewor
ld'
ssecond-
great
estci
gar
ett
eassoci
ati
onwi
thanor
mal
sl
i
ceoft
hepi
eof8.
8%.

• Gl
obalper
spect
iveandsi
gni
fi
cantexper
ti
sei
nfoodr
etai
l
ing–I
TChasf
ost
eredi
ts
br
ands begi
nni
ng f
rom t
he mostpunct
ualst
age wor
ked hand i
n hand wi
thi
ts
f
ranchi
seest
oensur
eaposi
ti
ver
esul
t.I
TC wor
kst
wopubl
i
cent
erpr
isesi
nIndi
a–
Aashi
rvaadI
nvest
mentandRet
ailSol
uti
onsLt
dandYi
ppee!Br
andsLt
d– t
hathav
e
t
remendousst
akesi
nexcessof70r
etai
lbr
andsacr
ossar
rangement
s(count
ingFMCG
)
.

• Soci
alI
nit
iat
ives-
ITChassetupt
ownwebcor
ner
s–e-
Choupal
s–whi
chmade
r
eal
-t
ime,cur
rent
,cr
it
icali
nfor
mat
iononenv
ironment
,est
eem di
scl
osur
e,Agr
iabi
l
ity
,
andbestpr
act
ices,
andsooni
mmedi
atel
yav
ail
abl
e.Thr
ought
hest
all
,cl
osebyf
armer
s
cani
nst
ant
lygett
oagr
ibusi
nessr
elat
edi
nfor
mat
ioni
nthei
rlocall
anguage.Var
ious
dr
ivesbyI
TC ar
e-ChoupalPr
adar
shanKhet(
CPK)
,SabSaat
hBadhei
n,andBaar
eh
Mahi
neHar
iyal
i
,andsof
orwar
d
• Leadi
ngi
nvar
iousr
egi
onsI
TCHot
elsi
sacut
ti
ngedgecombi
nat
ionofl
uxur
ious
l
odgi
ngsf
lour
ishi
ngbusi
nessandt
hemov
ementbusi
nesscompl
aint
s.Wi
tht
hekey
pr
oper
tyopeni
ngi
tsdoor
way
sin1975,I
TCHot
elst
odayi
sapi
oneeri
nmaki
ngone
mor
e benchmar
kfor t
he benev
olence busi
ness wi
th i
tsr
emar
kabl
e t
hought
,
Responsi
ble Luxur
y.Mor
eov
erwi
th numer
ous l
ong st
ret
ches ofcont
ri
but
ion wi
th
per
sonalt
hought
,homet
hought
,cooki
ngandv
ari
ouspar
tsacr
osshi
gh-
impr
ovement
r
egi
ons,
ITC'
slat
estbr
and–I
TCMast
erChef–i
srev
olv
edar
oundout
fi
tt
ingpur
chaser
s
wi
tht
hemostsi
gni
fi
canti
nfor
mat
iont
heyneedt
omakeapur
chasi
ngdeci
sion.

Def
ici
enci
es:
ITCSWOTANALYSI
S

• I
nef
fi
cientCostManagementSy
stem-
ITChasbeenf
ocusi
ngi
nonwi
deni
ngi
n
t
hei
rmi
ddl
e FMCG associ
ati
ons y
ethas f
ail
ed and can'
tassembl
ethe t
ypi
cal
accompl
i
shmentr
ate.Bei
ngt
hepr
inci
plemi
xint
heFMCGbusi
ness,t
heassoci
ati
on
hasgot
tent
rul
yimpact
edonaccountoft
hedi
mini
shi
ngi
nempl
oyment
sbr
oughtbyt
he
sl
ump.

• Hi
ghl
ydependentupon Tobacco-
ITC'
spaycomesf
rom t
wo associ
ati
ons –
t
obaccoandFMCG.Tobaccoaddst
o86%oft
otal
payandFMCGcont
ri
but
es14%.

• I
ncr
ement
alt
axcol
l
ect
ion r
ateon t
heCi
gar
ett
eBusi
ness– Theasofl
ate
appr
ovedGoodsandSer
vicesTaxAct
,2017hasexpandedt
heov
eral
lcostr
ate,hav
ing
ahugei
mpacti
ntheci
gar
ett
ebusi
nessofI
TC.I
fwecont
empl
atet
hecostpi
ecebef
ore
GSTanddi
ff
erent
iat
ioni
twi
tht
her
atesf
orcedaf
terGST,wenot
icet
hatt
her
eisa
col
ossalaugment
ati
onhappeni
ngi
ntheci
gar
ett
ebusi
nessofI
TC.Forexampl
e,bef
ore
GST 20ci
gar
ett
eswer
echar
gedatRs.
10r
egar
dless,asofnow 40ci
gar
ett
esar
e
char
gedatRs.
20maki
ngci
gar
ett
eswaymor
eexpensi
ve.

Openi
ngs:
ITCSWOTANALYSI
S

• Har
nessi
ngI
ndi
a'
sGr
owt
h-I
ndi
aneconomywi
l
lcr
eat
ebyar
ound8-
9% i
nthe
accompany
ing10y
ear
swhi
chhel
psI
TCwi
thset
ti
ngoutast
eadi
l
yexpandi
ngnumber
ofent
ryway
sfori
tsel
fint
hef
oodandr
ewar
dsbusi
ness.Ast
heGDPi
ncr
eases,
soi
sthe
pur
chasi
ngpowerofcust
omer
swhi
chi
nfer
sthatt
heywi
l
lreal
l
yneedt
obuybr
anded
t
hings i
nst
ead ofunbr
anded t
hings f
orbet
terqual
i
ty.Fur
ther
mor
einv
iew ofan
augment
ati
oni
npur
chasi
ngpoweroft
hecommonl
abor
ers,
theyar
easofnowr
eadyt
o
eatoutorf
eastoutandi
nthi
smannermot
elsandbi
str
oswi
l
lseeanext
ensi
oni
nthei
r
ar
rangement
sachi
evi
ngnewoppor
tuni
ti
esf
orI
TC.

• Cor
eBr
andExt
ensi
on-
Theassoci
ati
onwi
l
lbui
l
dtheappoi
ntmentchannel
sand
upgr
adev
olumesbyusi
ngi
tsAashi
rvaadbr
andasacr
ownsway
.Asofnow,t
her
eis
cr
it
icalpushedonbr
ands,f
ori
nst
ance,Aashi
rvaad,SunFeast
,andMi
nt-
o.Thi
swoul
d
beani
mpr
ovementdr
iverf
orI
TCi
ntheneart
erm.
• Onl
i
neCommuni
tyf
orFar
mer
s-Thee-
Choupaldr
iveof
fer
snewoppor
tuni
ti
esf
or
l
i
ttl
efar
mer
s,bychi
ppi
ngawayatt
hei
deaofcr
eat
ioni
nfor
mat
ionst
ream,maki
ngnew
channel
sofcommuni
cat
ionamongcr
eat
orsandbuy
ers,andgi
vi
ngaconv
ersat
iont
o
t
heobj
ect
iveofi
ssuesr
elat
edt
odev
elopi
ngont
heweb.Thi
sdr
ivewi
l
lfi
l
linasoneof
v
ari
ousf
undament
alcont
rapt
ionst
osensi
blyaugmentr
ust
ichandi
ness,ar
eusef
uli
n
keepi
nganey
eonf
armersui
cidesandot
herdi
l
igenti
ssuest
ort
uri
ngt
hissub-
regi
on
i
nsi
deI
ndi
a.

Ri
sks:
ITCSWOTANALYSI
S

• Compet
it
ionf
rom Ot
herSect
ors-
Ther
iskofI
TC l
i
esi
nvar
iousassoci
ati
ons
pr
epar
edt
oconv
eypr
act
ical
l
yident
icalt
hingsf
oral
owercost
.Cust
omer
swi
l
lpi
ckt
he
r
e-appr
opr
iat
ing associ
ati
on wi
tht
he mostmi
nimalcostt
hing si
nce i
tis mor
e
r
easonabl
efort
hem.I
TC'
s adv
ant
age wi
l
lbe br
oughtdown as r
e-appr
opr
iat
ing
associ
ati
onscutdownt
hei
rexpenses.

• Gov
ernment
s ar
efi
xi
ng l
aws on Tobacco I
ndust
ry-
Afor
biddance on pr
int
publ
i
cizi
ngofci
gar
ett
eswi
l
lcont
rolI
TC f
rom i
tsabi
l
ityt
ocont
actpur
chaser
sand
adv
ancei
tst
hings.Fur
ther
,acoupl
eofot
herhugef
inanci
almet
hodol
ogi
esl
i
kean
ext
ensi
oni
nExci
seDut
yandexpandedcost
sunderGSTar
eapar
toft
hei
mpedi
ment
s
t
hatcompr
omi
set
hisbusi
ness.
• Uncer
tai
n net i
ncome Massi
ve weaknesses ar
e env
elopi
ng I
TC'
s capi
tal
assi
gnmentst
rat
egy
.Theassoci
ati
onhasbeenpl
aci
ngasset
sint
oassoci
ati
onst
hat
don'
treal
l
yfi
tthepr
ofi
l
eofanI
TCf
inanci
albacker
.ITCLi
mit
ed'
sst
ockhasst
ooped
t
hroughoutongoi
ngy
ear
sasi
thasexpect
edt
ofi
ghtwi
thdecl
i
ningusei
nit
schi
ef
ci
gar
ett
ebusi
ness,amazi
ngl
yhor
rendousget
ti
ngdeci
sions,st
rai
nonedgesi
nli
ghtof
wor
kcostcl
i
mbs,
andat
hreat
eni
ngof
fer
edenv
ironment
.

Ov
eral
l
,ITCi
sast
rongassoci
ati
onwi
thoppor
tuni
ti
est
ofabr
icat
ethei
rpayast
hey
cont
inuet
o expand i
nto new r
egi
onsand mov
eint
o new or
gani
zat
ionst
hatt
hei
r
adv
ersar
iesdon'
t.Ther
iski
sfr
om t
hest
andar
dcompet
it
orsast
heyhav
ebeenar
ound
f
orqui
teawhi
l
eandv
eryl
i
ttl
eisadv
anci
ng.

Concl
usi
on

Asofnow I
tcFoodsTheSuccessf
ulTur
nar
oundhasshi
eldt
hecust
omer
s'demands
andessent
ial
sandgi
vi
ngbet
terchoi
cest
othei
rcust
omer
s.I
tcFoodsTheSuccessf
ul
Tur
nar
oundi
sanov
eral
lbusi
nesswhi
chi
sexpandedsi
nceofi
tsl
argeamount
sof
char
act
eri
sti
cs.On accountoft
hest
rong br
and nameest
eem t
heI
tcFoodsThe
Successf
ulTur
nar
oundhasr
eal
l
yev
olv
edi
nbef
oreext
ensi
vest
ret
chesofgi
vi
ngqual
i
ty
t
hingsandr
emar
kabl
eor
gani
zat
ionsi
sconsi
stent
lypushi
ngt
hebusi
nesst
oremai
n
st
rongandst
andf
ir
m onaf
ant
ast
icci
rcumst
anceandr
eput
ati
onkeepi
ngwat
ch.
Quest
ionNo2.MG Mot
orshav
ebeenhav
ingat
ought
imef
rom t
het
imeoft
hei
r
l
aunchi
nIndi
a.Theyf
eelt
hatt
her
ehav
ebeenal
otofpi
lf
eragesandwast
agei
nthei
r
pr
oduct
ionandt
heyneedt
osor
titoutassoonaspossi
ble.Al
so,t
het
imet
akent
o
manuf
act
urerone uni
toft
hei
rcar
sis ext
remel
y hi
gh as compar
ed t
o gl
obal
benchmar
ks.Theyhav
ehi
redy
ouasaconsul
tantf
ort
hesame?Cany
ouexpl
aint
he
concept
sofJI
TandLeanPr
oduct
iont
othem andhel
pthem appl
ythesamei
nor
der
t
oreducet
hei
rtr
oubl
es?(
10Mar
ks)

Ans2.

I
ntr
oduct
ion
Wi
thoutasecondt
ospeakofcr
eat
ion,orJI
T,andcel
lmanuf
act
uri
ngar
eimmov
abl
y
r
elat
ed,asat
elephonecr
eat
ionl
ayouti
sregul
arl
yaf
undament
alf
orachi
evi
ngj
ust
undert
hewi
recr
eat
ion.JI
Tut
il
izet
het
elephonecr
eat
ingl
ayoutt
odi
mini
shessent
ial
l
y
i
nvent
oryandwor
k-i
n-pr
ocess(
WIP)
.JI
Tenabl
esanassoci
ati
ont
oconv
eyt
het
hingsi
ts
cust
omer
sneed,
whent
heyneedt
hem,
int
heaggr
egat
etheyneed.

Thoughtandanal
ysi
s

Wi
thoutasecondt
ospeakofcol
l
ect
ingpr
ocess

Keypar
tsofJI
T,andst
rat
egi
esf
orachi
evi
ngJI
T,ar
edi
scussedunder
.

Wei
ghtev
eni
ngout
.Thi
sst
rat
egyi
ncor
por
ateschoosi
ngappr
opr
iat
esumsandki
ndsof
t
hingsneededi
nagi
vendayt
omeetcust
omeror
der
s.Thi
sst
rat
egygr
ant
srel
ati
onshi
p
t
oconv
eyt
hingswi
thacombi
nat
ionofcust
omerconcl
usi
onsconsi
stent
ly(
usi
ngast
ep
byst
eppl
an)
,inasmoot
hcour
seofact
iont
hatcut
offpoi
ntsi
nvent
oryanddef
err
al.
Taktt
imei
sessent
ialt
othest
epbyst
epar
rangi
ngr
equi
redi
nlev
eledoutcr
eat
ion
por
tray
edal
ready
.Iti
sther
ateatwhi
cheacht
hingoughtt
obedonet
oaddr
ess
cust
omeri
ssues,
conv
eyedi
npr
opor
ti
onoft
imeperpar
t.

Cr
eat
ionSequenci
ng.Thi
sincor
por
atescomput
ingt
hemodelf
ormaki
ngeacht
hing
t
ypei
ntheessent
ialaggr
egat
eforsomer
andom day
,byl
ear
ningt
het
aktt
imef
ort
he
st
epbyst
epmeasur
eofev
erysor
t.

Kanban.Consi
stent
lyi
nsi
nuat
edast
he"
tact
il
efr
amewor
k"ofl
eancr
eat
ion,
kanbani
sa
keyst
rat
egyt
hatchoosesacy
clescr
eat
ionsums,andi
ndoi
ngaccor
dingl
y,wor
kswi
th
JI
Tcr
eat
ionandment
ioni
ngst
ruct
ures.Regar
dlessofmor
eregul
ar"
push"pr
ocedur
es
f
orenor
mous scope f
abr
icat
ing whi
ch r
ely upon a nor
malnumberofexpect
ed
ar
rangement
s,kanban'
s"pul
l
"st
ruct
uremakesmor
eimpor
tantf
lexi
bil
i
tyont
hecr
eat
ion
f
loor
,somucht
hatt
heaf
fi
li
ati
onsi
mpl
yconv
eyswhati
sment
ioned.

Ev
enmor
eexpr
essl
y,akanban1i
sacar
d,checkedcompar
tment
,PCdemand,orot
her
dev
iceusedt
osi
gnalt
hatmor
ethi
ngsorpar
tsar
eneededf
rom t
hepastassoci
ati
on
st
ep.Thekanbancont
aini
nfor
mat
ionont
hepar
ti
cul
art
hingorpar
tjudgment
sthatar
e
needed f
ort
he subsequentf
ramewor
k st
ep.Kanban ar
e used t
o cont
rolwor
k-i
n
pr
ogr
ess(
WIP)
,cr
eat
ion,
andi
nvent
oryst
ream.

Thusl
y,kanbanser
vest
ofi
nal
l
ydi
scar
dov
erpr
oduct
ion,
abasi
csor
tofcol
l
ect
ingwast
e.
Di
ff
erentki
ndsofkanbani
ncl
ude:suppl
i
erkanban(
exhi
bitor
der
sgi
vent
oout
sidepar
ts
suppl
i
erswhenpar
tsar
eneededf
orconsecut
ivedev
elopmentf
ramewor
ks)
;in-
moder
n
of
fi
cekanban(
usedbet
weenpr
ocessesi
napl
ant
);andcr
eat
ionkanban(
showwor
king
headi
ngsf
orpr
ocessesi
nsi
deal
i
ne)
.
Leangat
her
ingst
andar
dsconsol
i
dat
eki
l
li
ngwast
eornon-
regar
daddedpr
act
icesf
rom
acr
osst
hecol
l
ect
ingact
ion.I
nsi
del
ean,
kil
l
ingwast
einsev
enkeydi
str
ict
stendst
othe
pr
inci
pleoppor
tuni
ti
esf
orcosti
mpr
ovement
.Thesesev
endi
str
ict
sar
esuggest
edas
"
Lean'
sSev
enDeadl
yWast
es"andar
einspect
edunder
.Thecondensi
ngTI
M WOODi
s
i
mpor
tantf
orr
evi
ewi
ngt
hatt
hem:

1. T—Tr
anspor
t-
Pri
nci
ple: El
i
minat
e unnecessar
y v
ehi
cles, r
elocat
ion, and
dev
elopment
sofmat
eri
als,
gadget
s,andpeopl
e.

2. I
—Inv
ent
ory
-Pr
inci
ple:Bal
ancenor
malsubst
anceandcr
eat
ionagai
nstcust
omer
demandst
odi
mini
shexcessi
nvent
ori
es.

3. M—Mot
ion-
Pri
nci
ple:Anal
yzewor
kpl
aceandcy
clest
reamst
o ki
l
lnon-
regar
d
addedadv
ancement

4. W—Wai
ti
ng-
Pri
nci
ple:El
i
minat
eanykeepi
ttoget
herev
ent
sformat
eri
al,peopl
e,
orst
uffi
nsi
deorbet
weenexer
cises.Assur
ancest
reamsar
echanged.

5. O—Ov
er-
handl
i
ngPr
inci
ple:
Eli
minat
enon-
regar
daddedpr
ocessst
eps.

6. O—Ov
erpr
oduct
ion-
Pri
nci
ple:
Eli
minat
eweal
thwor
k-i
n-pr
ocessandf
ini
shedi
tems
i
nvent
ory
.
7. D—Def
ect
s-Pr
inci
ple:El
i
minat
eal
lfl
awsal
ongt
hecy
clest
ream andwor
ktowar
d
"
amazi
ng"t
hingqual
i
ty.

Acoupl
eofr
andom squander
s,notpi
eceoft
hemai
nonce-
over
,hav
ebeenaddedby
manager
s,andt
hesecanmor
eov
eraddr
essi
mmensesav
ereser
ves.Apar
toft
hese
consol
i
dat
esquander
edl
i
mit
s,mov
ingt
owar
dregul
arsubst
ancebl
emi
shes,orl
ost
oppor
tuni
ti
es.

Squander
sCanBeFoundAcr
osst
heOr
gani
zat
ion

Not
wit
hst
andi
ng t
he mor
ethan sev
en per
il
ous squander
s,bosses hav
e per
cei
ved
v
ari
ousar
easwher
esquander
scanbecl
ear
edout
.Thesef
usesquander
edcapaci
ty,
messedupoppor
tuni
ti
es,
andmov
ingt
owar
dnor
malsubst
anceabandons.Thesemi
ght
i
ncl
ude:

• Poorcommuni
cat
ion

• Mi
suseofcapaci
tyandnonappear
anceofpl
anni
ng

• Mi
ssedopeni
ngs

• Poormanagement
• I
nef
fect
ivecour
sesofact
ion

Recuper
ati
ng t
he cost
s of squander
s shoul
d be a f
ir
st wor
ry on any pl
ant
admi
nist
rat
or'
sti
met
abl
e.Apr
act
ical
,reasonabl
e,andr
easonabl
yassessedr
epl
yfor
cut
ti
ngwast
eisut
il
izi
ngt
hepowerofWor
ximi
tyI
nc'
s.compl
etedl
i
neofpl
antmachi
ne
r
eal
l
ytaki
ngal
ookatsensor
sandpr
ogr
ammi
ng.Usi
ngt
hel
atesti
nIoTadv
ancement
s,
Wor
ximi
typassesonar
ati
onal
,cl
earwayofmanagi
ngchecki
ngcy
cleandcr
eat
ionl
i
nes.

Wor
ximi
ty'
sset
-upoft
hingsconsol
i
dat
essensor
sjoi
nedt
ocr
eat
ionmachi
nes,wor
k
st
ati
ons,wei
ght
-checker
s,and v
ari
ous cont
rapt
ions.These sensor
s scr
een t
he
equi
pmentandr
emot
elysendexecut
iondat
atocr
eat
ionl
i
nebasedadr
oitpr
ogr
ammi
ng.
Real
-t
ime r
esul
ts,as,st
il
lup i
nthe ai
rand pr
esent
ed on assembl
i
ng pl
antf
loor
i
nfor
mat
iondashboar
dsorTi
l
eBoar
ds.Assecondt
o-mi
nut
econdi
ti
onschange,any
dev
iat
ionf
rom t
het
ypi
calshowi
squi
ckl
ynot
ed,
anddel
egat
escant
akehel
pfulact
ions.
To not
ice t
he capaci
ti
es ofWor
ximi
ty'
s sy
stems,cont
actus t
o desi
gn a f
ree
pr
esent
ati
on.

Concl
usi
on

Asaspeci
ali
stofMGmot
orswecanusel
eangat
her
ingst
andar
dsal
lthr
oughapl
ant
's
cy
clest
oper
cei
veandt
akeoutcost
s.Har
dshi
pst
hroughwast
ecanbebasi
cand
at
tempt
sfocusedi
nonsquanderendcanconv
eyhugebenef
it
s.Thesev
enr
uinous
squander
s,cl
osebyv
ari
oushar
dshi
ps,
shoul
dbehugespacesofst
udyf
orassoci
ati
ons
t
ryi
ngt
ocol
l
ectt
heSmar
tFact
oryoft
omor
row.

mpl
ement
ingsl
antt
owar
danaf
fi
li
ati
oni
samor
epr
omi
nentoccupat
iont
hanbasi
cal
l
y
begi
nni
ngani
mpr
ovementpr
ogr
am.Commendabl
eleani
sast
rat
egyr
evol
vedar
ound
r
eli
abl
yfur
thercr
eat
ingexer
cisest
hroughanent
ir
eaf
fi
li
ati
on'
sunder
taki
ngs.Any
way
expr
essendeav
orsoract
ivi
ti
escanexi
sti
nsi
deal
eanexecut
ion,t
heov
eral
lthoughti
s
t
hest
eadyf
ini
shofanycost
soract
ivi
ti
est
hatdon'
tcont
ri
but
eani
mpet
usf
ort
he
cust
omer
.Onebasi
cspaceofchancet
hatshoul
dnotbeov
erl
ookedi
sthef
ini
shof
wast
easi
tisdescr
ibedunderl
ean.

Quest
ionNo3.3.LemonTr
ee,apr
emi
um chai
nofhot
elsacr
osst
hecount
ryhas
suf
fer
edt
remendousl
ossesdur
ingt
hispandemi
candhav
ehi
redy
ouasaconsul
tant
i
nor
dert
oanal
yzet
hesame

a.Cany
ouexpl
ainPol
it
ical
,Economi
candSoci
alf
orceswhi
chhav
ehadani
mpacton
t
hebusi
ness? (
5Mar
ks)

b.Cany
oual
sohel
pthem appl
ythecont
ingencyappr
oachofModer
nappr
oachi
n
or
dert
ofacet
hepandemi
cef
fect
ivel
y? (
5
Mar
ks)

Ans3.

I
ntr
oduct
ion

Asuper
binnchai
n,LemonTr
ee,whi
chgi
vesawi
descopeoff
aci
l
iti
est
hewhol
eway
acr
osst
henat
ion,hasexper
iencedgener
ousmi
sfor
tunesbecauseoft
hepandemi
c.
Al
bei
tthi
sent
erpr
isehasencount
eredv
ari
ousdi
ff
icul
ti
esbecauseoft
hisl
ockdown,
numer
ous par
tner
shi
ps hav
e addi
ti
onal
l
y conf
ront
ed v
ari
ous i
ssues dur
ing t
his
l
ockdownper
iod.Assumi
ngy
ouneedt
ofor
est
allcr
it
icalmi
sfor
tunes,y
oushoul
dcl
ose
acoupl
eofassoci
ati
ons'i
ntr
usi
veness.Youcoul
dpossi
blypl
ayoutaf
arr
eachi
ng
anal
ysi
soft
hei
mpact
sofv
ari
ousv
ari
abl
esasanagentoft
heLemonTr
eeCor
por
ati
on.
I
deaandanal
ysi
s

Ans3A.

Pol
i
tical
eff
ect

Thei
mpactoft
hepol
i
ticalf
act
orsi
nthemet
hodofpr
ogr
essi
ntheadmi
nist
rat
ive
measur
esandt
heper
spect
ivesoft
hecur
rentgov
ernmentwi
l
ltoagr
eatext
entdeci
de
t
hedev
elopmentand accompl
i
shmentofanyi
ndust
ryand t
hepl
ayer
sinsi
det
hat
i
ndust
ry.I
ntheev
entt
hatt
hepubl
i
caut
hor
it
yisst
eadyandal
i
fel
ongf
anoft
he
busi
ness,t
her
e wi
l
lbe abundant oppor
tuni
ti
es f
or t
he busi
ness t
o gr
ow.
aft
er
Cor
onav
irusunof
fi
ciall
awshav
ebeenchanged.OnaccountofHospi
tal
i
tyi
ndust
ryi
n
v
iew oft
hei
ncomet
othepubl
i
caut
hor
it
yfr
om t
het
rav
eli
ndust
ryar
ea,t
her
eist
he
f
ini
shedhel
pfort
hebusi
nessandt
hewor
ldofpol
i
ticsi
sfav
orabl
efort
headv
ancement
oft
hebusi
ness.

Fi
nanci
alef
fect

Undermonet
arycl
i
mat
efact
ort
hecomponent
sli
kecur
rentt
axassessmentl
evel
s,
wi
nni
ngexpansi
onr
ate,
thesi
tuat
ionoft
hehar
monybet
weenexchangeandt
rader
ates,
t
hedegr
eeofj
obl
essness,t
hepr
ogr
essi
onsi
nloancost
sandaccessi
bil
i
tyofaccount
s
i
nfl
uencet
hewor
kingoft
hebusi
ness.Thef
inanci
alcl
i
mat
eal
l
udest
othenat
ureand
cour
seoft
heeconomywher
eaf
ir
m cont
endsormaycont
end.Economyhasbeen
ant
agoni
sti
cal
l
yinf
luencedbyt
hepandemi
candt
husatpr
esenti
ssl
ant
ingdownwar
ds.
Soci
alef
fect

Changesi
nthequal
i
tiesandway
sofl
i
fe,
changesi
nqual
i
tiesandconv
ict
ions,
changi
ng
exampl
esofwor
kandr
ecr
eat
ion,segmentchanges,changi
ngbl
endi
ntheet
hni
cand
st
ri
ctf
oundat
ionoft
hepopul
ace–al
lwi
l
lhav
ethei
ref
fectont
hef
oodoft
hebusi
ness.

Duet
oCor
onav
irusi
ndi
vi
dual
sar
ekeepi
ngsoci
alsepar
ati
on.Thedev
elopi
ngsexual
or
ient
ati
on,et
hni
c,andsoci
alv
ari
etyi
nthel
aborf
orceset
soutdi
ff
icul
ti
esandopen
door
s(Bar
let
tandGoshal
,2002)const
ant
lyt
oeachi
ndust
ry.I
nthewor
ldwi
deset
ti
ng,
t
hisl
oadofcomponent
sbyandbywor
ktot
hedi
sser
viceoft
heaccommodat
ion
busi
nessast
hepr
ogr
essi
onsi
nwayofl
i
feandupsi
desofcl
i
ent
sshow adecl
i
ning
t
rend,
whi
cht
hushasant
agoni
sti
cal
l
yinf
luencedt
henei
ghbor
li
nessbusi
ness.

Ans3B.

I
deaandanal
ysi
s

Thepossi
bil
i
tywayt
odealwi
thmanagementdependsont
hepossi
bil
i
tyt
hatt
her
eisno
si
ngl
e mosti
dealwayofov
erseei
ng.Possi
bil
i
tyal
l
udes t
othe qui
ck unexpect
ed
condi
ti
ons.Power
fulassoci
ati
onsshoul
dtai
l
ort
hei
rar
rangi
ng,coor
dinat
ing,dr
ivi
ng,
andcont
rol
l
ingt
othei
rspeci
fi
ccondi
ti
ons.Al
li
nal
l
,chi
efsoughtt
orecogni
zet
hest
ates
ofanunder
taki
ng,
thenecessi
ti
esoft
hemanagementwor
k,andi
ndi
vi
dual
srequi
redas
por
ti
onsofat
otal
managementci
rcumst
ance.

1.Under
standpost
-pandemi
cvi
sit
ors'
conduct
Foracoupl
eofy
ear
satt
hispoi
nt,t
hel
odgi
ngbusi
nesshasbeenwor
kingt
owar
dsa
mor
evi
sit
orcent
eredwayt
odealwi
thcor
dial
i
ty.Sol
i
dly
,thi
simpl
i
edt
hati
nnswoul
d
i
ntendt
otunei
nandr
emai
nnear
byt
hei
rcl
i
ent
s'necessi
ti
esandcont
inual
l
yadj
ustt
hei
r
pr
oposi
ti
oni
nli
kemanner
.

2.FocusonDi
git
ali
zat
ion

I
ncaset
her
eisonear
eat
hatr
eal
l
ypr
ofi
tedf
rom t
hepandemi
c,i
tist
hei
nter
net
busi
nessi
ndust
ry.Whi
l
est
uckathome,
indi
vi
dual
shav
egot
teni
ncr
easi
ngl
ymor
eused
t
opur
chasi
ngl
aborandpr
oduct
sont
heweb;andl
odgi
ngsar
eabsol
utel
ynospeci
al
case.I
nsi
deapost
-COVI
Dtr
avelmar
ket
,innscan'
tst
andt
odependent
ir
elyonout
side
st
agest
oguar
ant
eet
hei
rcomput
eri
zedpr
esence.

3.Gett
her
ightappar
atusesf
ory
ourdesi
res

Si
mil
arl
yasaski
l
ledwor
kerneedsahugeenought
oolcompar
tmentt
ofeat
urehi
s
abi
l
iti
esasawhol
e,ahot
eli
eroughtt
o beexcept
ionalt
o pr
evai
linapr
ofoundl
y
cut
thr
oatmar
ket
.Thi
sst
andar
dappl
i
est
oyourl
odgi
ngt
rul
y(except
ionalconv
eni
ences,
t
ouchl
essi
nnov
ati
on,
…)j
ustascar
eful
l
y.

4.Tr
ynott
orestonOnl
i
neMar
ket
ing

Forar
eal
l
ylongt
ime,comput
eri
zedpr
omot
inghasbeent
hepr
ivi
l
egeoft
heOTA
i
mposi
ngbusi
nessmodell
eadbyBooki
ng.
com andExpedi
a.Tobesur
e,i
tusedt
obe
t
hatpr
ett
ymucheachandev
eryi
nnquest
iononwebsear
cht
ool
sshowedat
op
connect
iondi
ver
ti
ngt
ooneoft
hesi
gni
fi
cantbooki
ngst
ages.Thi
sthest
ateofaf
fai
rs
pr
act
ical
l
yrul
edouti
nnst
ocont
endi
nthecomput
eri
zedshowcasi
ngspace.

Concl
usi
on

Whi
l
erel
axat
ionexpl
orer
swi
l
lbequi
ckt
ogetont
hei
rnextget
-away
,theequi
val
ent
can'
tbesai
dforbusi
nessv
oyager
s.Wi
thv
ideoconf
erenci
ngi
nst
rument
sandot
her
adv
ancedar
rangement
s,t
hebusi
nessl
ocal
areawi
l
lhopet
otr
avel
lessandwor
kmor
e.

Yourl
odgi
ngneedst
otakeonast
rat
egyt
oobl
i
gedi
ff
erentcl
i
entf
ragment
srel
yi
ng
upony
ourar
ea,
proper
tyt
ype,
conv
eni
ences,
andsoon