Q4(a). As an astute entrepreneur who believes in creativity and innovation, Mr. Francois is pondering about manufacturing something, but he has to think carefully about the product to be manufactured. Therefore, he needs to understand what the Value Chain is about as well as the types of strategies that he could utilize to gain a competitive advantage. a. What information would you provide to Mr. Francois and his family regarding the Value Chain as they think seriously about going into the manufacturing sector? b. Also, what are the possible strategies that could be utilized once the Manufacturing company becomes established? Identify the strategies by name, and provide a brief explanation for each type of strategy suggested. Provide justification for your advice with respect to each strategy. Q4(b). John Francois Stores has experienced success throughout its years of operations. However, there is no one at the organization at present who understands how the organization should be evaluated with the objective of taking corrective action, if required. You are given the opportunity to advise Mr. Francois, his family and senior staff regarding the process of strategy evaluation, how the objectives are evaluated as well as the challenges that may arise. You need to be clear in providing advice to members of the organization with respect to measuring its performance. Therefore, what would say to Mr. Francois, his family and senior staff.
Undoubtedly, John Francois Stores has been a successful organization, but
something was needed to take the organization onto the next wave. As a family,
they looked at the financials very closely and recognized that while the company
was still ahead of other similar establishments, with an influx of customers at all
branches, the profits had been reducing in the three (3) years prior to 2019, though
minimally. It was determined that there were several factors in the external
environment that were impacting businesses generally.
Mr. Francois and his family had their usual monthly meeting in December
2019 and you were invited to get a better understanding of the status of the
organization. At the meeting, some points were noted in relation to the present
status of the organization, namely a SWOT Analysis. Whist the SWOT Analysis
was not fully articulated in terms of what the strengths can and have brought to the
Company; how the weaknesses are impacting the Company; the possible outcomes
from taking advantage of available opportunities; and the possible impact of
threats, the brief notes are highlighted below:
Strengths:
• Committed employees and management
• Appropriate management style
• Adequate financial and human resources
• Wide variety of products
• Broad market coverage
• Good
• Brand name reputation
• Excellent customer service skills
• Some expertise in new venture management
Weaknesses
• Lack of research and development skills
• Lack of understanding of strategic management and planning
Opportunities
• Exploit new market segments
• Move into new businesses, but how and what type
• Expand into foreign markets
• Acquire a profitable acquisition
Threats
• Increase in competition, but where do we look
• New forms of competition
• Changes in customer preferences
• Rising costs of products and labour
Changes in demographic factors
• Changes in economic factors and down turn in the economy
• Slow growth in the market
At the start of 2020, Mr. Francois and his family began to follow the news with
respect to the deadly COVID-19 virus. Mr. Francois pondered “I wonder how this
pandemic will affect our business. We sell mainly needs and some wants, so we
could expect our customers to continue to patronize us. However, we cannot
dismiss what the ultimate effects may be on the business”
The business has been successful, but Mr. Francois and his family has
recognized that things are changing in the environment and could have negative
outcomes on the business. At the January 2020 monthly meeting, it was decided
that the company should seek the services of a reputable and trusted person who
can advise and assist the organization with getting a clear understanding of what
strategic management and planning entails. Other matters discussed which the
family agreed to pursue included embarking on a training initiative which would
include staff at all levels as well as to create an awareness of the environmental
factors that can affect the company. Mr. Francois and his family decided to hire
you as a trust-worthy relative who he considered as intelligent and with an
understanding of business strategies.
The meeting ended with Mr. Francois thinking aloud that they should all read
about what it means to be innovative. He indicated that at the next meeting, they
will all come with their ideas of a plan that is different to what they are doing now
and which can contribute to continued success. He was not sure what type of plan
that would be. He has been following keenly the possible impact and negative
fallout that the company could experience because of the COVID-19 virus.
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