Using All The Information Available To You
Using all the information available to you, complete the following tasks:
Analyse the arguments for Amina’s proposed strategy
Analyse the arguments against Amina’s proposed strategy
Make a justified recommendation on whether Amina’s proposed stratergy should be adopted. (34 marks)
One reason why I feel that yes Sound and Vision plc should adopt Amina’s strategy of being more innovative in the way it operates in order to survive is because I feel that bringing in the new warehouse and distribution should enable quicker distribution and lower operating costs. As Amina has stated in her strategy that she intends to ‘streamline’ and ‘establish a centralised’ structure within the warehouse and distribution centre. This will be good for Sound and Vision plc because their index of real unit costs is higher than the industry average at 100 compared to 94. With making this change this would therefore decrease there unit costs as Sound and Vision will not be holding products for as long as it will be supplying both online and retail stores and storing the same products in each of the stores as the shops used to adopt a decentralised strategy of each manager stocking items according to the tastes of their local market. Therefore adopting a centralised and streamlining distribution is good because this means this could create a decrease in unit costs this could therefore be spent on increasing R&D as only 3% is being spent and the industry average is 6% as Amina believes Sound and Vision plc need to adopt a policy of strategic innovation and without R&D this would prove difficult this would be good for Sound and Vision as this could mean customers would be satisfied with the new feel of the company and satisfied with the products in store stocked up and also significantly cheaper therefore improved profits meaning Sound and Vision could
Analyse the arguments for Amina’s proposed strategy
Analyse the arguments against Amina’s proposed strategy
Make a justified recommendation on whether Amina’s proposed stratergy should be adopted. (34 marks)
One reason why I feel that yes Sound and Vision plc should adopt Amina’s strategy of being more innovative in the way it operates in order to survive is because I feel that bringing in the new warehouse and distribution should enable quicker distribution and lower operating costs. As Amina has stated in her strategy that she intends to ‘streamline’ and ‘establish a centralised’ structure within the warehouse and distribution centre. This will be good for Sound and Vision plc because their index of real unit costs is higher than the industry average at 100 compared to 94. With making this change this would therefore decrease there unit costs as Sound and Vision will not be holding products for as long as it will be supplying both online and retail stores and storing the same products in each of the stores as the shops used to adopt a decentralised strategy of each manager stocking items according to the tastes of their local market. Therefore adopting a centralised and streamlining distribution is good because this means this could create a decrease in unit costs this could therefore be spent on increasing R&D as only 3% is being spent and the industry average is 6% as Amina believes Sound and Vision plc need to adopt a policy of strategic innovation and without R&D this would prove difficult this would be good for Sound and Vision as this could mean customers would be satisfied with the new feel of the company and satisfied with the products in store stocked up and also significantly cheaper therefore improved profits meaning Sound and Vision could