MPM701 Business Process Management
Question 1 Organic farming and the food industry in Swaziland There is an increasing demand in Swaziland for Organic food. This needs to be produced using environmentally friendly farming methods; no genetically modified (GM) crops, artificial pesticides and fertilisers can be used. Any farmer claiming to be organic must be certified by a government approved regulatory body. In addition, food producers must also comply regarding production, packaging and labelling of food. Regulatory bodies have the authority to forbid the use of misleading labels and product descriptions and can issue fines for inappropriate production. Such bodies may also close operations where regular and frequent non-compliance occurs in relation to production, packaging and labelling of organic products. With consumer demand in Swaziland increasing for food that is healthy and sourced ethically and locally; organic food status is no longer a perceived luxury niche product, but rather a lifestyle choice. Many consumers . believe that non-organic produce is detrimental to their health and the environment. Major supermarket chains have also started to stock more organic and locally grown food. A key issue for all farmers is the weather. This can impact the volume (yield) and the quality of the crop and hence the market price. Organic farmers have developed alternative high-tech farming methods to improve their profitability and cash flow. This includes advanced weather information systems to help plan planting, harvesting and irrigation. Climate controlled growing tunnels also provide a pest-free environment with temperature, light, and humidity control. These methods have increased yield, extend the possible growing season, and allowed crops to be stored for longer before usage or sale, with no loss of flavour or quality. Using the information from the case above: Identify and explain in brief any THREE key external factors that impact the farms strategy. Analyse how these factors create opportunities and threats to the farm’s operations. Discuss at least THREE opportunities and THREE threats.
Question 2 Europlane Airlines Europlane Airlines has headquarters in Vienna, Austria. They have just adopted a methodological approach in the undertaking of the research design and planning phase of a project to streamline its procurement and inventory management operations. The agreed solution involves the merger of these two departments under the current functional structure into a single “inventory management” department located in a foreign European country - Luxembourg. The change has been facilitated by the emergence of a new integrated Supply Chain Management system allowing activities to be seamlessly managed by a single entity. The main driver behind the choice of location – Luxembourg, was cost, which is much lower due to cheaper labour and land costs, along with a very flexible employment framework. Implementing these plans will necessitate the closure of the 3rd floor of the existing facility headquarters in Vienna, resulting in hundreds of compulsory redundancies. Using the information from the case above: Explain how “BP Trends Process Redesign Methodology at the Operational Level” could be used in implementing the new integrated supply chain management system at Europlane Airlines. For each phase of the methodology describe the major activities that need to be undertaken and also the expected outcomes of each phase. Identify THREE important reasons why staff at Europlane Airlines will be resistant to change. Advise management with THREE effective recommendations that would lessen the staff resistance, as part of the change management process. Union pressure is indicating that an alternative to such significant redundancies would be to change organisational structures from the current functional approach to Matrix Management. In relation to Europlane Airlines – Explain what matrix management means, draw an appropriate matrix management diagram and discuss TWO associated benefits and TWO challenges of this alternative approach for Europlane Airlines. Question 3 Publiz Supermarkets in the USA Publiz operates a supermarket chain in the huge state of Texas, USA priding itself on a high level of customer service. At the most recent board meeting the customer service director Chuck, has serious concerns on the spike in customer complaints that have been received and recorded. A common theme in the complaints received relates to increasing queuing times that customers are experiencing at the checkout. Chuck is proposing a project to address the current issue and seeking your assistance with its development. Every Publiz supermarket has 20 checkout points, and these are not always fully manned at peak times, notwithstanding these, significant queues always develop, prompting customer complaints. Some customer surveys and feedback are tracked but measurement systems are poor. As a result, Chuck is proposing improving the scanning technology at its respective checkouts. Based on the experience of other users of this technology, it will cut the average time taken to process a customer’s shopping trolley from 4 minutes to 40 seconds! Using the information from the case above: Draw a GAP model highlighting the performance and capabilities gaps for Chuck with accompanying commentary on explaining the current state, and then the desired state, for Publiz Supermarkets’ proposed improvement. In your answer also include a list of Causes and Consequences of this problem. Draw a suitable Process Scoping Diagram and explain using this diagram the FIVE generic types of process problems that Publiz is experiencing (as detailed in the case study above
Question 4 Performance Measurement for DELL computers In 2000, Harvard Professors, Kaplan and Norton, sometime after they created the Balance Scorecard tool in quadrant format, went one-step further and suggested that a better visual approach is the hierarchical format. Suggesting that some measures of each perspective contribute to others and are summed up in improved shareholder value. Draw a Balance Scorecard Hierarchical Strategy Map for the computer giant DELL computers highlighting the FOUR perspectives. Provide and explain at least TWO lead and TWO lag measures for each of the four perspectives as it relates to DELL. Explain the importance of each perspective as it relates to DELL and how it links to other perspectives up the chain to derive improved shareholder value.
Question 5 Multinational’s Processes and Data Select a “multinational organisation” of your choice (except DELL computers that was part of Q4) that has been mentioned in the news media in the past 12 months Identify and describe what the specific Value Chain of this chosen organisation is. Explain this chosen organisation’s (FIVE) Primary & (FOUR) Support Activities with reference to Porter’s Generic Value Chain Diagram. Explain how your chosen organisation could utilise the below listed specific enterprise systems to enhance their operational efficiency: Supply Chain Management System Customer Relationship Management System SAP C-Business Map and its applicability for your Organisation