Business Strategy

Victorians Secret, in both its' business and e-business components use a B to C business strategy that focuses on the same market segment and economics in both channels. Strategically the company focuses on individual business processes instead of its' business model so that it can improve upon some of them with technology as this avoids a primarily internet-driven business model which could affect the sales of their retail locations.Their business processes that support their verbal selling and purchasing activities for their physical locations can be utilized by the e-commerce channel of the business as well as the retail locations which is a strategy implemented in order to reduce transaction costs by improving the flow of information within the company and its' channels. This helps to coordinate the actions for both channels which is useful in maintaining the same brand standards regardless of where the consumer is buying the product.An example of this would be the technique libr ary database the company established which Is shared among all regions/suppliers and includes company standards of design and production. Victorians Secret implements a business strategy that makes use of multiple marketing channels such as their retail stores and e-commerce channel. They utilize a 360 degree approach for the website with channel cooperation regarding their already established physical locations.Victorians Secret strategically avoids channel conflict by differentiating certain products such as best sellers and only offering them for sale from Victorians Secret, In both Its' business and e-business components use a B to C business strategy that focuses on the same market segment and economics In both the e-commerce channel of the business as well as the retail locations which Is a be the technique library database the company established which is shared among. Business Strategy Victorians Secret, in both its' business and e-business components use a B to C business strategy that focuses on the same market segment and economics in both channels. Strategically the company focuses on individual business processes instead of its' business model so that it can improve upon some of them with technology as this avoids a primarily internet-driven business model which could affect the sales of their retail locations.Their business processes that support their verbal selling and purchasing activities for their physical locations can be utilized by the e-commerce channel of the business as well as the retail locations which is a strategy implemented in order to reduce transaction costs by improving the flow of information within the company and its' channels. This helps to coordinate the actions for both channels which is useful in maintaining the same brand standards regardless of where the consumer is buying the product.An example of this would be the technique libr ary database the company established which Is shared among all regions/suppliers and includes company standards of design and production. Victorians Secret implements a business strategy that makes use of multiple marketing channels such as their retail stores and e-commerce channel. They utilize a 360 degree approach for the website with channel cooperation regarding their already established physical locations.Victorians Secret strategically avoids channel conflict by differentiating certain products such as best sellers and only offering them for sale from Victorians Secret, In both Its' business and e-business components use a B to C business strategy that focuses on the same market segment and economics In both the e-commerce channel of the business as well as the retail locations which Is a be the technique library database the company established which is shared among. Business Strategy Application Exercise (Assignment to be submitted) (180 min. ) * Construct a value chain for your department/ division/ company and contrast it over time or vis a vis a competitor, to try and explain the business performance. | | Guidelines for the assignment * Brief introduction of your firm and division. * Draw a value chain of your division/company. (as next best choice generic chain will do) Enlist all the activities under the relevant primary and support functions. Show how each activity is being pursued now, and also differently over time, by your firm. (OR if comparison is not over time but with a competitor’s value chain, show how they perform it differently) * Indicate internal links within the activities, if any. Show how the activities of the value chain are linked to company strategy and structure and how these links enhance competitive advantage. (or show the lack of these links and divergence of activities-scope for improvement in value chain. ). Explore external links (eg. lignment of activities with vendors that enhances differentiation. ) * Conclude-Reflect on overall shift in value chain over time OR difference with competitor’s value chain and how that results in difference in business performance. * The assignment submission should not exceed 5 pages| | About VMware VMware is the global leader in virtualization and cloud infrastructure, delivers customer-proven solutions that accelerate IT by reducing complexity and enabling more flexible, agile service delivery.VMware enables enterprises to adopt a cloud model that addresses their unique business challenges. VMware’s approach accelerates the transition to cloud computing while preserving existing investments and improving security and control. With more than 350,000 customers and 50,000 partners, VMware solutions help organizations of all sizes lower costs, increase business agility and ensure freedom of choice I belong to the Consulting Services Division of VMware where we carry out the consulting implementation and management of customer projectsVmware’s Value chain is broadly covered as below . The Value Chain Analysis of VMware covers two categories of activities – primary and support activities. The primary activities are most familiar, as it deals with the steps and processes necessary to take the VMware product or service from R&D to final customer sale and support. * Suppy Chain Management – covers the identification, sourcing, procurement, and supplier management of the â€Å"raw materials† that comprise the final product or service. Operations – covers the engineering, inventory management, and manufacturing of the final product or service. Note:   any technologies incorporated into the product or service are also included here. * Distribution – covers the entire channel network and partnerships that VMware drives for distributing the key platform product solutions * Marketing and Sales – covers the marketing, merchandising, promotions, advertising, sales, and channel management to get the completed product and service to the end customer. Service – covers the support and maintenance of products and services after they are delivered to the customer. The secondary activities are less familiar, but equally important in supporting product and service scalability. * R&D – covers the testing of the product as per the customer specifications, development and roll out of new product updates * Technology Development – covers the supporting technologies, both information technologies as well as other technologies, important for keeping the lights on.Technologies integrated into the product would be covered in the Operations stage. * Human Resource Management – covers the recruiting, hiring, development,and firing of personnel. * General Administration – covers the general admin tasks of the company (buildings, offices, warehouses) I belong to the Services Department function which forms the primary form of activities in the value chain in terms of delivering the value of the virtualization and cloud benefits to customers as per VMware best practices.Compared to our competitor which is Microsoft our services are allinged to be more proactive to customers in the form of Technical Account Manager program. The product profolio that we drive in the Services and consulting space are truly key in giving VMware 84% of the global market share. VMware Professional Services offer end-to-end consulting services for Datacenter, Virtualization Management, Desktop Virtualization and Cloud Services.Our service offerings are based on in-depth virtualization expertise, proven best practices, and repeatable delivery methodologies to help customers realize the full value of virtualization for IT as a service computing models faster, and with less risk. Based on best practices from working with thousands of customers and using reliable, r epeatable methodologies, our services are designed to help Assess the current environments, Plan and design solutions that meet the desired business objectives, Build and implement the desired virtualization solutions, and Manage the environment with staff augmentation and performance tuningRegardless of the level of a customer’s virtualization maturity or business need, VMware Consulting Services accelerate the business value of IT transformation to IT as a Service computing models, through virtualization, with less risk compared to our competition which is the key differentiator in our engagement with customers compared to competition. We have provided key differentiators in our Services Value chain which has resulted huge business benefits to VMware the summary of which is as below – Year-over-Year Revenue Growth of 25% to $1. 6 Billion – Operating Margin of 20. 6%; Non-GAAP Operating Margin of 32. 6% – Trailing Twelve Months Operating Cash Flows Growt h of 64% to $2. 12 Billion; Free Cash Flows Growth of 53% to $2. 07 Billion Service revenues, which include software maintenance and professional services, were $573 million for 2012, an increase of 35% from 2011. The use of value chain analysis facilitates the strategic management of VMware as an organization. The three main types of competitive strategy are cost leadership, differentiation, and focus.Cost leadership is a strategy that relies on lowest-cost production and delivery, while differentiation relies on outstanding quality or product (program/course) features. The focus strategy relies on differentiation or cost leadership for a particular product or market niche. Value chain analysis is a framework that can provide a number of benefits to the VMware management of virtualiation and cloud computing organizations. This analysis help VMware managers of to identify linkages between value activities within the organization, and to think in terms of process rather than function or department.Through analysis of the value system, managers identify potentials for strategic alliances with various actors in the industry value system. Identification of cost drivers and linkage with value chain activities help managers focus on cost reduction and on finding ways to optimize returns throughout the value chain. As well, value chain analysis helps managers understand cost management problems. Failure to see the impact of a decision on the overall value chain will result in missed opportunities for VMware.The value chain framework allows VMware to break down the chain—from basic infrastructure and support, to software development, to customer support and service—into strategically relevant activities to understand the behavior of costs and the sources of differentiation. Profit Margin is typically only one part of the larger set of activities in the value delivery system. Gaining and sustaining a competitive advantage requires that VMware understands the entire value delivery system, not just the portion of the value chain in which it participates.Suppliers and distribution channels have profit margins that must be identified if one is to understand VMware’s cost or differentiation positioning, because the customers ultimately pay for all the profit margins throughout the value chain. Broadly the value chain framework is used as powerful analysis tool for the strategic planning and to build the organizational model ensuring an effective leadership model. The value chain concept is applied also in the individual business unit and is extended to the whole supply chain and distribution networks of VMware.To form a successful product for VMware it is important to add value in each activity that the product goes through during the life cycle. The best possible value can be achieved in the product development process by adding value in each stage. For that it needs all, or a combination of, value chain activities and a proper s ynchronization among all the related activities. A proper organization is required that contains all the required functional departments to perform these activities and a proper communication approach is required to synchronize the activities of these functional units efficiently. Business Strategy Application Exercise (Assignment to be submitted) (180 min. ) * Construct a value chain for your department/ division/ company and contrast it over time or vis a vis a competitor, to try and explain the business performance. | | Guidelines for the assignment * Brief introduction of your firm and division. * Draw a value chain of your division/company. (as next best choice generic chain will do) Enlist all the activities under the relevant primary and support functions. Show how each activity is being pursued now, and also differently over time, by your firm. (OR if comparison is not over time but with a competitor’s value chain, show how they perform it differently) * Indicate internal links within the activities, if any. Show how the activities of the value chain are linked to company strategy and structure and how these links enhance competitive advantage. (or show the lack of these links and divergence of activities-scope for improvement in value chain. ). Explore external links (eg. lignment of activities with vendors that enhances differentiation. ) * Conclude-Reflect on overall shift in value chain over time OR difference with competitor’s value chain and how that results in difference in business performance. * The assignment submission should not exceed 5 pages| | About VMware VMware is the global leader in virtualization and cloud infrastructure, delivers customer-proven solutions that accelerate IT by reducing complexity and enabling more flexible, agile service delivery.VMware enables enterprises to adopt a cloud model that addresses their unique business challenges. VMware’s approach accelerates the transition to cloud computing while preserving existing investments and improving security and control. With more than 350,000 customers and 50,000 partners, VMware solutions help organizations of all sizes lower costs, increase business agility and ensure freedom of choice I belong to the Consulting Services Division of VMware where we carry out the consulting implementation and management of customer projectsVmware’s Value chain is broadly covered as below . The Value Chain Analysis of VMware covers two categories of activities – primary and support activities. The primary activities are most familiar, as it deals with the steps and processes necessary to take the VMware product or service from R&D to final customer sale and support. * Suppy Chain Management – covers the identification, sourcing, procurement, and supplier management of the â€Å"raw materials† that comprise the final product or service. Operations – covers the engineering, inventory management, and manufacturing of the final product or service. Note:   any technologies incorporated into the product or service are also included here. * Distribution – covers the entire channel network and partnerships that VMware drives for distributing the key platform product solutions * Marketing and Sales – covers the marketing, merchandising, promotions, advertising, sales, and channel management to get the completed product and service to the end customer. Service – covers the support and maintenance of products and services after they are delivered to the customer. The secondary activities are less familiar, but equally important in supporting product and service scalability. * R&D – covers the testing of the product as per the customer specifications, development and roll out of new product updates * Technology Development – covers the supporting technologies, both information technologies as well as other technologies, important for keeping the lights on.Technologies integrated into the product would be covered in the Operations stage. * Human Resource Management – covers the recruiting, hiring, development,and firing of personnel. * General Administration – covers the general admin tasks of the company (buildings, offices, warehouses) I belong to the Services Department function which forms the primary form of activities in the value chain in terms of delivering the value of the virtualization and cloud benefits to customers as per VMware best practices.Compared to our competitor which is Microsoft our services are allinged to be more proactive to customers in the form of Technical Account Manager program. The product profolio that we drive in the Services and consulting space are truly key in giving VMware 84% of the global market share. VMware Professional Services offer end-to-end consulting services for Datacenter, Virtualization Management, Desktop Virtualization and Cloud Services.Our service offerings are based on in-depth virtualization expertise, proven best practices, and repeatable delivery methodologies to help customers realize the full value of virtualization for IT as a service computing models faster, and with less risk. Based on best practices from working with thousands of customers and using reliable, r epeatable methodologies, our services are designed to help Assess the current environments, Plan and design solutions that meet the desired business objectives, Build and implement the desired virtualization solutions, and Manage the environment with staff augmentation and performance tuningRegardless of the level of a customer’s virtualization maturity or business need, VMware Consulting Services accelerate the business value of IT transformation to IT as a Service computing models, through virtualization, with less risk compared to our competition which is the key differentiator in our engagement with customers compared to competition. We have provided key differentiators in our Services Value chain which has resulted huge business benefits to VMware the summary of which is as below – Year-over-Year Revenue Growth of 25% to $1. 6 Billion – Operating Margin of 20. 6%; Non-GAAP Operating Margin of 32. 6% – Trailing Twelve Months Operating Cash Flows Growt h of 64% to $2. 12 Billion; Free Cash Flows Growth of 53% to $2. 07 Billion Service revenues, which include software maintenance and professional services, were $573 million for 2012, an increase of 35% from 2011. The use of value chain analysis facilitates the strategic management of VMware as an organization. The three main types of competitive strategy are cost leadership, differentiation, and focus.Cost leadership is a strategy that relies on lowest-cost production and delivery, while differentiation relies on outstanding quality or product (program/course) features. The focus strategy relies on differentiation or cost leadership for a particular product or market niche. Value chain analysis is a framework that can provide a number of benefits to the VMware management of virtualiation and cloud computing organizations. This analysis help VMware managers of to identify linkages between value activities within the organization, and to think in terms of process rather than function or department.Through analysis of the value system, managers identify potentials for strategic alliances with various actors in the industry value system. Identification of cost drivers and linkage with value chain activities help managers focus on cost reduction and on finding ways to optimize returns throughout the value chain. As well, value chain analysis helps managers understand cost management problems. Failure to see the impact of a decision on the overall value chain will result in missed opportunities for VMware.The value chain framework allows VMware to break down the chain—from basic infrastructure and support, to software development, to customer support and service—into strategically relevant activities to understand the behavior of costs and the sources of differentiation. Profit Margin is typically only one part of the larger set of activities in the value delivery system. Gaining and sustaining a competitive advantage requires that VMware understands the entire value delivery system, not just the portion of the value chain in which it participates.Suppliers and distribution channels have profit margins that must be identified if one is to understand VMware’s cost or differentiation positioning, because the customers ultimately pay for all the profit margins throughout the value chain. Broadly the value chain framework is used as powerful analysis tool for the strategic planning and to build the organizational model ensuring an effective leadership model. The value chain concept is applied also in the individual business unit and is extended to the whole supply chain and distribution networks of VMware.To form a successful product for VMware it is important to add value in each activity that the product goes through during the life cycle. The best possible value can be achieved in the product development process by adding value in each stage. For that it needs all, or a combination of, value chain activities and a proper s ynchronization among all the related activities. A proper organization is required that contains all the required functional departments to perform these activities and a proper communication approach is required to synchronize the activities of these functional units efficiently. Business Strategy MPM703 Business Strategy and Analysis Trimester 1, 2013 Assignment: Business Strategy Report In this assignment you are acting either as a group of strategy consultants (group assignment), or as one strategy consultant (individual assignment). You have been asked to prepare a strategy report for a business. The first step is to select a business as the subject of your assignment. The business can be a publicly listed company in Australia or overseas which is of interest to you or other members of your group, or it may be a large private or family business located either in Australia or overseas.Do not use or refer to assignments completed by students for this unit in previous trimesters. (A record of past assignments is kept on a database). Note also that the requirements of the assignment change from trimester to trimester. The focus of this assignment is on the business level of analysis. Therefore if you select a diversified company then make sure you focus only on one of the comp any’s business units. The report must be specific and applied to the business. In other words you must apply the relevant concepts and tools of business strategy to the particular conditions and circumstances of the business you are studying.General statements and references to theories and models that are not applied to the business will not add value to your assignment. Similarly, data about the business that is not analysed and presented from a strategic perspective – using the relevant concepts and tools of strategy – is of little value. To help you in this exercise, consider the position of the CEO of the business who will be reading your report and looking for a strategic analysis and recommendation that is practical and specific to her or his business.The CEO does not want to read a broad analysis that could apply to any number of organisations and does not ‘speak’ to their business. Group or individual submission This assignment may be compl eted either as a group submission (up to 5 people) or as an individual assignment (one person only). Either way, you must sign up in one of the group assignment spaces online. Marking will be done without regard to whether the assignment was a group or individual submission. In other words an individual assignment should be of a similar standard and quality to that of a group assignment.For group assignments the mark will be shared by all in the group. Therefore: 1. Allocate the various tasks among your group members and agree on interim due dates for the stages of work. Make sure your interim due dates allow for drafts to be circulated and edited so that the final submission is of the highest standard. 2. Each group member must make a relatively fair and reasonable contribution to the report, in whatever form or shape that might take, in order to share equally in the mark. In the rare event that there are any issues you should contact me two weeks prior to the report due date so th at a resolution can be reached.Report format and requirements The presentation of your report is a critical aspect of this assignment. It is essential that your report is formatted appropriately, and carefully edited and re-edited to achieve a professional standard. Allow time to draft and re-draft your assignment prior to the due date in order to improve the quality of writing and presentation. You must follow carefully the report structure and requirements set out below. 1. Title Page In the title page, you should include: †¢ Title of the report, e. g. ‘Company X: A Business Strategy Report’. Cloud Deakin Group number (whether you are a group or individual). †¢ The names and student IDs of your group members. †¢ Off campus or on campus status. †¢ Date and Unit Code. †¢ Name and postal address for the return of your assignment. 2. Table of contents Include all of the section headings and subheadings used in your report, together with page numbe rs. 3. Executive summary (Less than 300 words) This is a one page only summary of the report, written as a series of short paragraphs, outlining your key findings and recommended strategic option. 4. Introduction (Approximately 400 words)This section provides some background and context to your report. Your introduction should include: †¢ A brief description of the reasons for undertaking the study, i. e. the value of undertaking a strategy review of the business. †¢ An introduction to the business and its macro environment and industry. 5. Strategic Analysis 5. 1 Methods (Approximately 200 words) Provide a brief description of the techniques of data collection and analysis used in this section, including an outline of the sources used to gather the data upon which the report is based.Data may be collected from sources within the business (business documents, questionnaires, interviews) and from industry reports, media sources, the World Wide Web and database searches. It is important to describe the types and quantity of your data sources so that the reader can evaluate the quality and validity of the data on which your analysis is based. 5. 2 Business strategy statement (Approximately 300 words) Describe the mission, vision, objectives, scope, and advantage of the business (see section 1. 2. 3 in the text). Summarise these descriptions into a clear and compelling strategy statement in 35 words or less. . 3 External analysis (Approximately 800 words) †¢ Conduct a PESTEL analysis of your business’s macro environment, evaluating whether each of the PESTEL factors are positive, neutral, or negative for the industry. †¢ Provide an overall evaluation of the impact of these factors on growth and consumer demand in the industry. Explain which of the influences in your analysis are likely to be the main drivers for change in the future. †¢ Using the five forces framework described in your text, evaluate and briefly describe the key for ces at work in your business’s industry environment. Draw a strategy canvas for your business and the two main rivals (see Figure 2. 9 in the text). Describe briefly the three most critical success factors for your business (see pp. 73-74 in the text). 5. 4 Strategic capability (Approximately 400 words) †¢ Describe your business’s strategic capability in the form of a value chain analysis. †¢ Present a SWOT analysis in table form. 5. 5 Strategy and culture (Approximately 400 words) Draw a cultural web of the business (see Chapter 5 of your text and Figure 5. 8). Briefly evaluate the relationship between the business’s culture and its strategy. . 6Strategic direction (Approximately 450 words) Identify and describe the one most viable strategic direction for the business. To undertake this task refer to Figure 7. 2 on p. 232 and the relevant commentary. Explain how your chosen strategic direction allows the business to: †¢ Respond appropriately to t he industry and macro environments described in your external analysis. †¢ Match the strengths of the business to the opportunities in the environment, described in your earlier analyses, to achieve a sustainable competitive advantage. . Conclusion (Approximately 250 words) This section is written in paragraph form to provide a summary of one key finding from each of the report sections from 5. 2 to 5. 6. 7. References List all of the references referred to in the report. Please note that appendices are not allowed. Requirements Word limit:3500 (excluding the references only) Line spacing: 1. 5 Font size: 12 Contribution to your final mark: 40% Due date: 3. 00pm, Tuesday 7 May 2013 NB. Words in excess of 3500 will not be marked. Assignment submission rules All assignments are to be submitted online, in addition to a printed copy delivered to the Faculty office, or handed in at lecture. For off campus students the mailed hard copy of the assignment is deemed to be on time if sen t and post-marked by the due date of the assignment. Please note that the version of an assignment you submit electronically must be the same as any version you submit in any other form. Students enrolled through partnership agreements must submit as required by the unit chair at the partner institution on the due date. Assignments are on time if they are submitted online and in hard copy on the due date. On campus students must submit the printed version in lecture or at the Faculty office by the due date; off campus students must mail their submission on or before the due date to: Assignment Tracking AASD Deakin University Waurn Ponds, VIC, 3217 3Remote students: A student is classified as remote if they are living in a place where it takes more than 3 days for mail to reach Deakin University, Geelong, for example overseas in certain locations.If you are a remote student, you may submit your assignment by email to [email  protected] edu. au If you are a remote student and submit via email, please clearly state your name, student ID number, unit code and assignment number on the email. It is also recommended that you place this information on your assignment as a Footer or Header. The Assignment Tracking staff will print your assignment and place an Assignment Attachment Form onto your assignment. It will then be tracked and sent to your assessor for marking the same day.When returning the assignment, the assignment will be sent by normal postage and not via email. Please do not post another version in the mail if you email your assignment. 5 No extensions will be considered for assignment submission due dates unless a written request is submitted to and negotiated with the unit chair. 6 Assignments submitted late without an extension being granted will not be marked. Plagiarism and other academic offences Plagiarism is the copying of another person’s ideas or expressions without appropriate acknowledgment. Please read the notes on plagiarism in the Unit Guide. Business Strategy Victorians Secret, in both its' business and e-business components use a B to C business strategy that focuses on the same market segment and economics in both channels. Strategically the company focuses on individual business processes instead of its' business model so that it can improve upon some of them with technology as this avoids a primarily internet-driven business model which could affect the sales of their retail locations.Their business processes that support their verbal selling and purchasing activities for their physical locations can be utilized by the e-commerce channel of the business as well as the retail locations which is a strategy implemented in order to reduce transaction costs by improving the flow of information within the company and its' channels. This helps to coordinate the actions for both channels which is useful in maintaining the same brand standards regardless of where the consumer is buying the product.An example of this would be the technique libr ary database the company established which Is shared among all regions/suppliers and includes company standards of design and production. Victorians Secret implements a business strategy that makes use of multiple marketing channels such as their retail stores and e-commerce channel. They utilize a 360 degree approach for the website with channel cooperation regarding their already established physical locations.Victorians Secret strategically avoids channel conflict by differentiating certain products such as best sellers and only offering them for sale from Victorians Secret, In both Its' business and e-business components use a B to C business strategy that focuses on the same market segment and economics In both the e-commerce channel of the business as well as the retail locations which Is a be the technique library database the company established which is shared among.