Management Assignment on Business Case Scenarios
Management Assignment Part A
A1: McGrath and McMillan (2000) argue that successful executives will learn to master uncertainty through the skills of entrepreneurial leadership. First, define the term entrepreneurship. Then list at least two of the five key elements of entrepreneurial leadership and provide an example of each.
A2: Globalisation is the global flow of money, products, information, services and expertise. There are opportunities and risks for businesses in a global business environment. Identify one opportunity and one risk and provide a ‘real world’ example of each.
A3: Name the two main considerations that managers need to make when calculating the severity of a risk. Using these considerations, explain what kind of risk would likely be handled with a risk acceptance strategy by an organization such as CQUniversity in the Covid-19 era. You should situate your discussion within the given organizational context.
A4: Name the seven 'S' associated with McKinsey's 7S framework and identify whether each is a 'soft' or 'hard' factor. Explain the difference between 'soft' and 'hard' factors.
A5: There are four global firm staffing policies. Name and describe two of these staffing policies using Amazon as an example. Then explain what the advantages of using these two policies are?
Financial services sector looks to expand overseas
Australia’s battered and bruised financial services industry is gearing up for expansion into overseas markets. The sector is also looking at ways to get more women into leadership roles, with women making up just 9 per cent of chief executives in the industry. The Financial Services Council’s 2019 State of the Industry Report has targeted exports as a growth market Australia hasn’t fully tapped in to.
Of the $93 billion in services Australia exported in 2017/18, just $5.4 billion was financial services.
“While Australia has an advantage in terms of the domestic performance of its financial services industry, we are not making full use of this to export these services to the rest of the world,” the report released on Wednesday said.
Council chief executive Sally Loane said looking overseas was a natural move.
“More could be done to maximise the potential for financial services exports with just 5.9 per cent of services exports coming from the sector,” she said.
“This is well below the OECD average of 12.7 per cent.” One of the areas the report targets is funds management, using expertise from Australia’s superannuation scheme – the fourth largest private pension system in the world.
“Australia still has significant opportunities to expand exports of funds management, with Australia managing only a small fraction of total funds on behalf of overseas investors,” the report said.
Ms Loane also said the sector needed to look at increasing the number of women in senior leadership roles.
Just 9 per cent of financial services chief executives are women, significantly lower than the average for all industries of 17 per cent.
The financial services industry copped a hammering at the banking royal commission, leading the report to say the financial advice industry was in a “state of flux”.
The number of financial advisers in Australia jumped solidly in December 2018 as new rules led to advisers completing their registration.
“However, the numbers of advisers may decline in the short-term due to significant changes to the sector including increased regulation, new education standards, and market movements as large institutions de-merge and sell their adviser groups,” the report said. The above article is extracted from 32TUhttps://thenewdaily.com.au/money/superannuation/2019/08/01/financial-services-sector-expansion-overseas/U32T After reading the case above, prepare an essay that will help businesses in the Australian financial services sector develop a strong strategy to expand overseas by incorporating the following analyses:
1. Conduct a SWOT analysis to help businesses in the Australian financial services sector to gain contextual understanding. Your answer must include consideration of the theoretical basis of the SWOT model and effective application of it in the given organisational context.
2. Describe and discuss the business practices that you believe Australian organisations in the financial services sector should adopt to enhance their organisational performance in the foreign marketplace. Your answer must include definitions of the relevant theories and concepts and effective application of them in the given organisational context.
3. What international staffing approaches should Australian financial organisations adopt in their overseas expansion? Why? Your answer must include definitions of the relevant theories and concepts and effective application of them in the given organisational context.
Management Assignment Part A
A1: Preeti is a CQUniversity graduate who wants to set up a carpet cleaning business in Australia. Which business structure(s) she should choose to register and why? Your answer must include a definition of at least one recommended business structure and at least three justifications for the choice of that structure.
Company business structure can be recommended. A company business structure has shareholders or the members who is governed by director or manager and who own the company. In this structure, it must own a separate banking account to the business owners. There should be a lodging of annual company tax return highlighting the income tax, business related deductions, and income.
The liabilities of the business will be on the company rather than on Preeti as an individual.
It can be advantageous for the high risk-business because of the limited liabilities. Debts accrued in the business becomes the responsibility of the company and no load will be on Preeti.
A2: The Coronavirus outbreak in 2020 has posed a series of risks to businesses all over the world. Please identify TWO major risks the spread of the Coronavirus brings to a business such as Myer (upmarket Australian department store chain) and provide at least TWO corresponding risk mitigation strategies. Your answer must include the definition of the risk mitigation strategies and operationalise them in the context of Myer.
Major risks are:
1. Delay in stocks
2. Supply chain disruption
Risk management strategy can be defined as the approaches and changes made in the Myer to minimize the adverse effect of the coronavirus. Risk mitigation or limitation is the best possible strategy for operationalising the risk management within the context of Myer.
1. Lockdowns are the only option for restricting this pandemic and limiting it, and so, stocks will be delayed till the virus is active. So, the company needs to handle and manage at low stocks in much efficient way. They can delay the deliveries and use a booking approach for the customers so that the product can be delivered to them on priority basis even if it is late.
2. Again, the transportations are majorly stopped and so, supply chain cannot be restored or function properly. ‘Pop-up’ stores can be recommended as the best option for Myers as even the online markets are also closed (for non-essentials)
A3: How does open innovation differ from closed innovation? Your answer must provide definitions of open and closed innovation, explanation of how they differ and incorporate examples of how both closed and open innovation are used in an organisation.
Open innovation: Commercialisation of both the innovations and the ideas from other firms and identifying the approach for bringing the in-house ideas in the market for the deployment of the pathways outside the existing businesses. Porous environment boundary can be observed while discussing the surrounding environment and the company’s environment in manner to allow the innovations between the two. It allows the company in commercialising the internal as well as external ideas through deploying the in-house and/or the outside pathways to the market. Closed innovation: generation, development, and commercialization of on ideas by the company is called closed innovation. Self-reliance philosophy is what is applied in this innovation deployment strategy. It allows control to the company on generating their own ideas for developing, manufacturing, marketing, distributing, and servicing themselves.
A4: What advantages and disadvantages does globalisation bring to a small business in Australia? Your answer must include an example of one advantage and one disadvantage in an organisational context.
Globalisation can be defined as the global flow of the expertise, services, information, products, and money. In other words, it can also be described as the shifting of the production and market towards more independent and integrated world economy.
The advantages of globalisation for small business in Australia is that they can also have an emphasizing impact over the product or the services. It can allow efficient connectivity between the consumers and business globally through using the logistics (cargo flights) and communication (internet, online stores, and others). This allows the distribution of the products or services in different countries at low cost and minimum time consumption. For example, a consumer can avail any product of other country using the online stores or retail companies and get it delivered to their door steps. It allows the small business to access the foreign clientele.
The disadvantages include the price wars and competition in the market. Despite of the quality of product or service, the taxes and transportation make the product more expensive as that of in the origin state. Companies like McDonald’s and KFC offers street foods at very competitive price and thus, small businesses have to either lower their price or face extinction. The evolvement in the small business is required that can be accomplished through adopting the connectivity, automation, and high-quality products.
A5: What are masculinity and femininity dimensions of culture? How does it affect the work of employees in a business setting? Your answer must include an example of each cultural dimension's effect in an organisational context.
Masculinity is the representation of a preference within the society that can used for material rewards, assertiveness, heroism, and achievement for the success. More competition can be observed in the society at large. In business setting the masculinity can be related as tough culture.
Femininity can be described as taking the stand for the preferences for quality of life, caring for the weak, modesty, and cooperation. Consensus-oriented can be observed in the society at large.In business setting the femininity can be related as tender culture.
Coronavirus will boost e-commerce in the long run, but brings new risks
B1. Please conduct an external environmental analysis (using the appropriate framework) to identify the factors impacting e-commerce companies. Your answer must include definition of the theoretical model and effective application of it in your chosen organisational context.
Political factors: The reliance of the company on the government support for the implementation, distribution, and profit has contributed positively for the company. In this pandemic situation, the government cannot allow the crowd to be gathered at the stores and thus, online companies are getting benefit of it. The article also shows how Amazon is taking advantage of this situation and expanding the business globally with essentials and non-essential items. Every company’s economy is disrupted due to the Covid-19 pandemic and so, the foreign and national taxes will be matter of fact for the company and the price of the products.
Economic factors: Retail business can be an exception as the business can still flourish in this pandemic situation even after getting the beating. The long-term vision of the company is already in operation as it can be seen that amazon is already prepared for covering the large markets in different sectors. As mentioned in the article, customers are playing with internet as lockdown is in impact from very long time and the retail products are always needed by the consumers. Amazon introducing the opportunity for the consumers to be with the needed products and thus, ever after getting the beating of the stocks and economy, it can still generate positive and better revenues in long-term.
Social factors: The fact because of which the online companies become giant in retail market is that customers were willing to buy the product online as they did not want to go out or wanted to products in single touch, or having hundreds of options for a single product. Despite of the fact that they wanted, they are now forced to buy it online as there is not any other way of being disease free and avail the necessities at the same time in this corona-virus situation. Amazon is using this factor as the opportunity in establishing a better relation with the customers and delivering the necessary products at the door steps with complete protection making the situation less risky for the consumers.
Technological factor: This is the greatest factor for the profit of the company as Amazon is a technological company. Varying degrees of technologies are being used by Amazon for assuring that the product is delivered to the consumers. Currently, ongoing experiments and approaches of drone delivery will come in practice very soon if this pandemic situation is not eliminated shortly. They are providing the products, service, or the supports 24*7 that makes it more reliable for the customers as any consumer can be connected to the company via telephone, email or the website. The AI and big data can already be seen in the website as that with the actual recommendation and introducing the products of need.
Legal factor: Legal support to the online companies from the government side can be seen in impact globally. The risks of opening the physical stores increases the chances of physical contacts and thus, increase in the virus. Thus, even after certain hie in the tax, the governments are forced to allow them legally for delivering the products. This opens the opportunity for Amazon to expand and cover most of the market as much possible.
Environmental factor: there is not much impact on the environment using the online deliveries. Despite of this, the company is already focused on adopting the sustainable practices in their busines operations.
B2. How would you evaluate the attractiveness of the e-commerce industry based on Porter’s Five Forces Model, using Amazon as an example? Your answer must include definition of the analysing framework and effective application of it in the chosen organisational context. Porter’s Five Forces Analysis of Amazon:
1. Competition or the competitive rivalry (moderate force): the moderate force might be changed to weak considering the expansion and the growth of the company. In the current situation, none of the company is as aggressive as amazon (strong), the company has strong force of substitutes (strong)as the company is available in even small and large sectors of developing and developed countries, and the low switching cost (strong) due to its own logistics system makes it an emphasizing company in the retail industry and could possibly be on the top in next year.
2. Buyers or bargaining power of Amazon (Strong force): the pandemic situation has no doubt influenced the income of the middle-class individuals and the somewhat to upper class category and so, this factor will be in impact with much impact as that in earlier situation. The external factors include information quality, which is always provided by amazon on their website or connecting to the customer service (strong), low switching costs (strong), and substitutes availability (strong). The company must consider the bargaining power strongly for mitigating the business challenges.
3. Bargaining power of Suppliers (Strong force): this situation of covid-19 has disrupted the supply chain in the entire world as all the international connectivity have been disconnected and it is being assumed that it will be in force for the entire year. Thus, the amazon must consider this factor as a strong force while developing the new strategies. The external factors include size of suppliers (strong as there are limited suppliers at the current stage those could operate legally), forward integration (string as the production is still low in most of the countries), and population of suppliers (strong).
4. Substitution or Threat of substitution (Moderate): This force could have been strong if there was not covid-19 impact. The weak force can be seen in the switching cost as most of the retailers are either closed or have long line for the products or services. The customers are inclining towards the online deliveries. Moderate force can also be seen in the substitutes as the customers can now buy the product from the local stores but still the risk of infection will be very high.
5. Entry or threat of new entrants (Weak): the company has already an existing network and can easily operate with the existing products in the particular nation. This makes a great web of product availability (even if it delays). Company is already set to cover more markets more aggressively and thus; the new companies can never meet the level of amazon in this current situation.
B3. Based on your analysis, what recommendations can you give to e-commerce companies in order to effectively manage the virus-induced challenges? Your answer must address at least THREE elements of the NINE elements on the business model canvas.
For effectively managing the virus-induced challenges by e-commerce companies, following three elements will be most critical for the consideration:
Channels: e-commerce is already using the digital marketing and online platform for reaching to the customers. However, being physically available of the products is the greatest matter of concern for the customers. Thus, besides the interaction with the customers, the company must majorly focus on the adoption of different channels those can be used for delivering the products. Adoption of the social media advertisement, digital marketing, big data, artificial intelligence, and others are needed in this situation along with the logistics and drone delivery systems for delivering the products.
Key Resources: production is not the business operation of most of the e-commerce companies and so, the company must focus on maintaining the customer relationship through providing resolutions of the possible problems faced by the customers as soon as possible, already reaching new market and this can be boosted through managing the possible markets of whose products can be delivered to the customers. The network and platform of the companies must keep on increasing as this is the only time when the company can introduce a great network to the customers and thus, making loyal customers.
Key Partnership: The availability of the products is the major aspect for the ecommerce companies to be stable and cover a large group of customers. The partnership will be enabling the option for the companies to make sure that the product availability is always there and the desired quantity and type of product can be made available to the customers.