Each case is worth 50 marks, making a total of 100.

STRATEGIC MANAGEMENT

Each case is worth 50 marks, making a total of 100.

Have a common list of references across questions and place it at the end of your submission.

Please label each question for the corresponding answer (viz. Case 1, Q1/ Answer1)

The word limit (means maximum words apart from cover page, table of contents, appendices, and references) is 3000 across all questions distribute word count as per the marks carried by each question.

No more than three sides of A4 as appendices if you choose to use any.

The material provided should be enough.

Do not make any assumptions.

If you want to make Any assumptions, then the assumption made should be briefly stated at the onset of answer (will go into word count in bullets).

Specify very clearly the word count carried by the assumption.

Please use Times New Roman font size 12

APA referencing style.

In this assignment DO NOT explain or include the five disciples of learning organisation (building a shared vision, systems thinking, mental models, team learning, personal memory)

Case1: Japanese Animated Films [50 Marks, 1500 words]

Japanese animated films, featuring cute images with improbably big eyes and cuddly creatures with squeaky voices, used to be scoffed at as a cultural curiosity whose appeal in the west was limited to children and cartoon junkies. But in recent years the market for anime has found a wider audience, becoming one of the country's most valuable exports.

There are about 430 anime production companies in Japan. They employ large numbers of people to create hundreds of detailed drawings that the films require. It takes 100 people about three to three-and-a-half months to complete a 21-minute programme for a typical TV slot. If the programme becomes a big hit, the profits are shared by the TV broadcaster, the advertising agency, and the financial backers who invest in the projects. The studio that created the anime is paid costs but is excluded from profit sharing. Programmes cost on the average about Y13m to make, and the production company on the average receives about Y9m to Y10m from TV broadcasters. Some anime production companies generate additional revenues through toys, T-shirts, and other merchandizing if they retain rights to drawings of popular programs, but most have to forgo the rights to the original drawings in order to pay overheads and finance the production of the projects.

Q1: Analyze the above description of the Japanese animation industry using Porters Five Forces model. [20 Marks]

Porter five force model

Q2: How can widespread availability of high-speed broadband internet influence the industrys structure and competitive conditions? (15 marks)

Q3: And; in continuation, why and what strategies can be adopted for superior business performance by a typical mid-sized production company? (15 marks)

Explain using Porter Generic Strategies.

Source of competitive advantage: cost, uniqueness

Breadth of competitive scope: broad target market, narrow target market

From above explain, cost leadership, or differentiation, or focused lost cost, or focused differentiation.

Case 2: Tesla [50 Marks, 1500 words]

Elon Musk is a man of visions and has crafted the purpose behind many modern ventures. He comes with a marked humility letting subordinates run the course and share credit after initial success is achieved. A founder of PayPal and SpaceX, a rocket-maker Mr. Musks long-term aim is to help colonise Mars and die peacefully there. In the meantime on earth, he is also the CEO of Tesla Motors a manufacturer of electric cars that has built up a reputation of doing things differently. Recently the Economist magazine noted: It [Tesla Motors] produces many key parts in-house, from the battery packs to the slick touch-screen control panels. It is setting up a network of free fast-recharging points for its customers to top up their batteries on the road. It is battling Americas powerful car-dealership lobby so it can set up its own retail outlets. And it is aiming to get its products from the drawing-board to the assembly line at the speed of Silicon Valley tech firms rather than the statelier pace of Detroits car giants. Teslas manufacturing chief, Gilbert Passin, says the Model S moved from first design to production in just over two years, something he reckons would take a traditional car maker five or six years. While Tesla Motors has made some early gains in a market where many have perished and growth is still slow, the article goes on to highlight that it is still early days. For instance: Established carmakers could decide to fight Tesla head-onindeed BMWs new i range of electric and hybrid cars seems to be aimed at similar buyers. In the longer-term other technologies, such as biofuels, might develop faster than the electric battery.

At the onset of 2019, Elon Musk, Teslas CEO,notified employeesthat the company needed to improve its profitability to become a viable company. This meant a 7% reduction in hourly and salaried staff, the elimination of its sales referral program, and an increase in its Supercharging pricing. But despite changes, Tesla has a record of costly and capital-intensive decisions, in part because the company prides itself on doing things differently. For example, Tesla opted to build commoditized components, such as seats, in-house, rather than relying on global seat suppliers that can produce more efficiently. Tesla also assumed that automation would reduce labour costs and speed up production, but as the legacy auto industry already knew, robots cannot yet replace human hands for every function.

Q1: Based on the limited case information, evaluate Elon Musks leadership style. You need to also draw a perspective using images of leadership (Senge) [20 marks].

Assignment Guidance:

Choose whether we think Elon Musk (Images of Strategic leader, Senge 1990)

Leader as Hero, Leader as Commander, Leader as Steward, Leader as Teacher, Leader as designer

Pick and explain which category Elon musk we think falls under and provide reasoning as of why we think so.

Also explain why we think he does not fall in other categories.

Q2: Classify the nature /type of innovation the electric car industry is marked by in contemporary times (as in the case)? (10 marks)

Assignment Guidance:

Explain what is meaning of Close and Open Innovation.

Close: do it on your own. Keep it secret. Within the company, do not share with competitors.

Open: work with other people

Then mention TESLA use both close and open innovation.

Explain what areas TESLA use CLOSE and where they use OPEN Innovation. How did TESLA use it.

Q3: What is the type of innovation (Satell) or innovation mixes that may help Tesla propel the electric car industry and retain its strong position in the industry? (20 marks)

Assignment Guidance:

Mapping Innovation, Greg satell, 2017, Find Novel solution to problem.

4 types of innovation:

breakthrough innovation,

sustaining innovation,

basic research,

Disruptive Innovation

We must explain minimum 2 strategies or explain all 4 strategies.

i.e. Tesla does Sustaining innovation.

i.e. Find out what is R&D budget of TESLA on yearly basis will need this for Basic Research