ANZ, Volkswagen, Microsoft: Strategic Operations Management Analysis

This report provides a comprehensive analysis of strategic operations management through the examination of ANZ Bank, Volkswagen, and Microsoft. It delves into ANZ Bank's strategy formulation, considering its external environment and internal capabilities, using PESTLE analysis to highlight political, economic, social, technological, legal, and environmental factors. The report further explores Volkswagen's operations management, focusing on quality management and human resource strategies, including job design and workforce diversity. Additionally, it assesses Microsoft's strategic landscape, covering strategy formulation, implementation, and evaluation. The report also applies Porter’s Five Forces model to P&G Ltd, evaluating competitive rivalry, the threat of new entrants, bargaining power of suppliers and buyers, and the threat of substitutes. Finally, it discusses the relevance of Porter’s Value Chain model and applies it to IKEA, illustrating how value is generated through primary and secondary activities. Desklib offers this document as a valuable resource for students studying strategic operations management, providing access to past papers and solved assignments.

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Strategic operations management:
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Table of contents
Q1...............................................................................................................................................2
a. Strategy formulation of ANZ bank....................................................................................2
External environment of ANZ Bank......................................................................................2
Formulation of strategies........................................................................................................4
b. Operations Management of Volkswagen...........................................................................5
2. Human resource management and Job design of Volkswagen..........................................6
Q2...............................................................................................................................................7
A) Relevance of Porter’s Five Forces Model as a strategic management approach..............7
b) Application of Porter’s five forces model on P&G ltd......................................................7
C) Relevancy of Porter’s value chain model as an approach for strategic management
practice...................................................................................................................................8
D) Porter’s value chain model of IKEA.................................................................................9
Q3.............................................................................................................................................11
A) Analysis and assessment of Microsoft............................................................................11
b) Strategy formulation of Microsoft...................................................................................11
C) Strategy implementation by Microsoft............................................................................12
D) Strategy evaluation of Microsoft....................................................................................12
References................................................................................................................................14

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Q1.
a. Strategy formulation of ANZ bank
The key resources and capabilities of of ANZ Bank are as follows:
 Workforce- Skilled efforts of 9000 employees helps in enhancing the sales revenue
and profit margin. The managerial initiatives in this direction are career enhancement
plans and programs.
 Technology- ATM machines filled with latest technological features and mobile
banking apps have eased the process of the financial transactions for the clients and
the customers (Anz.com.au, 2019).
 Branch networks- Inauguration of new branches in modern, sub-urban areas have
acted as an agent in terms of operating the financial transactions in an efficient and
effective manner.
 Products and services- Savings account, stock brokerage facilities, insurance
policies and asset based lending shape the diversity in products and services of ANZ
bank.
External environment of ANZ Bank
Political  New Zealand labour party
 Political instabilities
 Tax obligations
Economic  Unemployment rate
 High interest rates
 Financial instabilities
Social  Customer beliefs, attitudes, interest
and culture

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Technological  Mobile banking
 Internet banking
Legal  New Zealand money laundering
laws
Environmental  Client screening tools
 Equator principles
Table 1: Pestle analysis of ANZ bank
(Source: Anz.com.au, 2019)
Political
Political instabilities and harsh tax obligations adversely affect the productivity of
ANZ Bank. Mention can be made of the claims filed by the New Zealand Labour Party
regarding the dissemination of the exact information to the clients and the customers before
the closure of the branch (Anz.com.au, 2019).
Economic
Factors like unemployment rate, foreign exchange, saving and interest rate plays a
major role in the growth of ANZ bank. In this, mention can be made of high exchange rates,
fluctuation in the prices of the raw materials, which act as obstacles in the process of smooth
financial transaction from the internal to the external environment.
Social
Beliefs, attitude and class of the customers is crucial for ANZ bank in terms of
developing value in the business operations.
Technological

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Technological support revolutionises the operations of the ANZ bank. Typical
evidence of this lies in the apps, which provide the facilities of internet banking (Anz.com.au,
2019).
Legal
ANZ bank abides by the market legislations like money laundering laws, Data
Protection Act (1998) and others, for averting the illegal scandals and issues.
Environment
Client screening tools are assistance for ANZ bank to perform credit approval
process. These tools are also helpful for detecting the high level risks and low level
borrowers. Along with this, mention can be made of Equator Principles, which seems
beneficial in the development of social and environmental policies applicable in the lending
and investment decisions (Anz.com.au, 2019).
Competitors
Competitive rivalry between ANZ bank and Westpac, Kiwi Bank and BNZ is high.
This is because threat of substitutes is high, which reflects the threats of customer turnovers.
Typical example can be cited of Kiwi Bank, which exempted extra charges in the segment of
house loans and low banking fees.
Formulation of strategies
For formulating the strategies, ANZ bank synthesizes the external challenges and the
internal resources and capabilities for dealing with the challenges. Managerial support is
crucial in terms of undertaking the decisions in accordance to the needs, demands and
requirements. Before selection of the new strategies, ANZ bank identifies the avenues, which
can lead to growth of the profit margin (Anz.com.au, 2019). Reference can be cited of the
launch of Pacific app, which enhanced the ease of the pacific consumers to avail the services.

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Secure mobile banking improved the stability in the relationship with the customers in the
Pacific region. In this, the main focus was on improvising on the customer base through the
provision of convenient banking services.
The major drive behind the success of Pacific app is market research, which helped
the personnel in identifying the prospects, into which they can venture through investments.
Reporting to the CEO is one of the major aspects in the strategy formulation. This is followed
by agenda creation, which relates to opening a branch for enhancing the divisional
organizational structure (Anz.com.au, 2019).
b. Operations Management of Volkswagen
1. Quality management
Quality of the products and services is crucial for serving the customers of
Volkswagen. Mobility of the customers is the main focus for developing strategies for
managing the quality in the designs of the automobiles. Group Quality Management is
applied in the stages of manufacturing and testing of the vehicles. Attempts are made to
enhance the functional diversity. Technological support is reflected from the use of the
software in manufacturing the driver assistance systems (Volkswagen.com, 2019). Market
research is conducted for gaining an insight into the software ruling in the market. Software
development and quality assurance is reflected from undertaking Quality Assurance tests for
ensuring the safety of the users while driving. This approach has enabled the personnel of
Volkswagen to optimize their business processes and structures.
Mention can be made of the quality management systems, which prove beneficial for
Volkswagen in terms of measuring the standards and quality of the manufactured vehicles.
The Quality Assurance tests are conducted through the consideration of standards and codes
of ISO 9001. Production and sell of the vehicles is executed through the prior approval from
the directors (Volkswagen.com, 2019). This is followed by reviews through national audit

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systems, where verification is conducted by comparing the exposed performance by the
identified and specified requirements of achieving customer satisfaction through the
enhancement of operational excellence.
2. Human resource management and Job design of Volkswagen
Human resource management
Volkswagen Group employed 642,292 employees in 2017, which is 2.5% more than
the employee base of 2016. Strategic human resource management is reflected from the
approach towards ‘Empower to Transform’, which focused on the involvement of the
stakeholders in corporate governance, comprehensive participation rights of the employees,
outstanding training opportunities, principle of long term service through systematic
employee retention and maintaining the balance in the performance and remuneration
(Volkswagen.com, 2019). According to the recent trends, the strategy and principles of
human resource management pertains to innovation. Agile working practices prove beneficial
in terms of the enhancing the teamwork. Use of Diversity Index is apt in terms of enhancing
the equality within the workforce. In 2017, the group wise percentage of women in the
management was 13.8%, which is estimated to mount up to 20.2% by the end of 2025. The
aim is to increase the level of internalization in the senior management team.
Job design of Volkswagen
Volkswagen managers adversely influence the purchasing power of the buyers by
providing flexibility in the vacancy positions. The associate groups and companies of Audi,
SEAT, Bently, Bucatti, Lamborghini, Ducati and Scania are entrusted with the responsibility
to select the potential candidates, who can contribute in increasing the sales revenue and
profit margin (Volkswagen.com, 2019). Social media is adopted for creating job
advertisements and informing the candidates about the vacant posts.

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Q2.
A) Relevance of Porter’s Five Forces Model as a strategic
management approach
Threat of new entrants indicates vulnerability in the form of customer turnover,
compelling businesses to encounter severe losses. Specific planning is the only way in which
dominance can be maintained over the contemporary brands. Substitute products destroy the
originality of the products and values for which the brand has been famous (Durand, Grant &
Madsen, 2017). Using organic ingredients in the production of the items is fruitful for
catering to the health needs of the customers. This aspect is apt for retaining the customers,
influencing their buying behaviors and powers. Bulk orders reduce the operational cost,
attracting large number of customers, influencing the bargaining power of the suppliers
(Bondarenko, Isaeva, Orekhov & Soltakhanov, 2017). Competitive rivalry is reduced in its
intensity through the consideration of competitive policies.
b) Application of Porter’s five forces model on P&G ltd
Competitive rivalry in case of Procter and Gamble is very high. This is because the
products manufactured by P&G are also manufactured by Unilever. Similarity in the products
make the switching costs null. There is variation in the products used by the customers,
however, the brands are the same. Promotion for the extra products is assistance for P&G ltd
in terms of handling the substitute products. This is through the means of discounts, offers
and gifts for expanding the customer base (Pg.com, 2019). The customers are offered flexible
choices to choose their preferred products, indicating lesser brand loyalty.
Threat of new entrants is moderate for P&G. At the initial stage, large investments
are needed. In this, development of the economies of scale is time consuming. In addition to
this, access to the different communication channels is not always easily available. The
market rulers, through the adoption of the technology have attained the status of corporate
giants. These corporate giants can easily take the acquisition of the new start-up brands,

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which are attempting to establish their business in the market. Rationality and tactfulness in
this approach helps P&G Ltd to secure their position in the market (Pg.com, 2019).
Bargaining power of the suppliers is low for P&G Ltd. The bargaining power of the
suppliers can adversely be affected through the supply of quality raw materials, technology
and packing materials. Variety prevails in the number of suppliers, which suffices the need of
catering to the specific needs, demands and requirements of the customers. Low switching
costs is an advantage for P&G Ltd to retain the prospective customers. Bulk purchases make
the business of the company ideal for the suppliers in terms of investments. This reduces the
intensity of the bargaining power reflecting the consistency in the prices of the products
(Pg.com, 2019).
Bargaining power of the buyers is moderate for P&G Ltd. The buyers are provided
with the choice to select from variety of products. This makes the switching cost very low.
Mention can be made of the personal hygiene and cosmetic segments, where the brand
loyalty is high. The preference of the customers matters the most for P&G Ltd in terms of
increasing the sales revenue and profit margin. Based on these aspects, it can be said that the
price sensitiveness is low.
In case of the threat of substitutes, P&G Ltd can be exempted. This is because
substitutes are not available for the soaps and shampoos produced by the company. Now, the
customers prefer original products, especially for hygiene (Pg.com, 2019). This is for
averting the health risks. This aspect makes the risks of switching costs low.
C) Relevancy of Porter’s value chain model as an approach for
strategic management practice
Porter’s Value chain analysis is assistance for businesspersons for assessing the
position in the market for achieving competitive advantage. As a matter of specification,
value chain analysis enables the businesspersons to seek an insight into the best possible

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means for generating value in the business operations, which is, by reducing the operational
costs. Koc and Bozdag, (2017) opines that in the competition prevailing in the market, this
analysis is crucial in terms of securing the market position. This analysis has two set of
activities- primary and secondary.
Primary activities comprises of inbound logistics, outbound logistics, operations, sales
and marketing. The secondary activities involve firm infrastructure, human resource
management, technological development and procurement. On the other hand, Prajogo, Oke
and Olhager, (2016) is of the view that technological support is assistance in terms of
generating value through the reduction in the operational cost and enhancing the profit
margin. Functional organizational structure is fruitful for generating value within the business
operations.
D) Porter’s value chain model of IKEA
Fig 1: IKEA value chain analysis
(Source: Ikea.com, 2019)
Primary activities
Inbound logistics

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Purchasing raw materials from the suppliers is the initiation of the inbound logistics
for IKEA. This reflects the advent of globalization into the business, where the central
monitoring from the trade offices helps in ensuring the efficient execution of the operations.
About 20-25% of the employees deal with the logistics for performing the store operations. In
this, ‘economies of scale’ and ‘strategic relationship” with the suppliers shapes the aspect of
value creation (Ikea.com, 2019).
Operations
Franchise, property and Finance division shapes the operational areas of IKEA.
Franchise Division is the core operational area. Decentralized business strategy is assistance
in terms of executing the business operations in an efficient and effective manner. This
strategy is fruitful for regional development, as the managers are levied with the autonomy to
take decisions regarding culture, customer behaviour among others. Cost benefit approach
helps in the value creation. Tracking the location of the firms in Easter Europe and China,
IKEA saves bulk resources on the human resource development (Ikea.com, 2019).
Outbound logistics
Pick up and order points enhances the outbound logistics for IKEA. The
transportation cost for the delivery of the orders from the stores is paid by the customers. The
customers can select from the choice available for the type of delivery- parcel delivery and
truck delivery.
Marketing and sales
Print and media advertising, sales promotion, events and managements, public
relations management shapes the marketing and sales department of IKEA. The company is
the multichannel retailer, where the sales is conducted through the means of stores,
catalogues and app services (Ikea.com, 2019).

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Q3.
A) Analysis and assessment of Microsoft
Microsoft is an American multinational technology company, dealing in developing,
manufacturing, licensing and supporting the sale of computer software, electronics, personal
computers and other related services. It is a public company, operating under the electronic
industry. As a matter of specification, the products of the company range from windows,
office, servers, skype, visual studio, Dynamics, Xbox, Surface, Mobile and others. The
services of the company include Azure, LinkedIn, MSDN, One Drive, Outlook, Microsoft
Store, and Windows Update among others (Microsoft.com, 2019). According to the annual
report of 2018, the revenue generated was US$110.36 billion. The operating income was US$
35.05 billion. The net income was US$16.57 billion. The total assets mounted to US$ 258.84
billion and the equity value was US$82.71 billion. The major drive behind this is the hard
efforts of 134,944 employees. New versions of the products and services is a means for
generating value within the operations, indicating higher competitive edge.
b) Strategy formulation of Microsoft
The stakeholders and shareholders are involved in the process of strategy formulation.
The corporate level strategy of Microsoft includes:
 Growth- Launching Office 365 has increased 70% of the usage in the personal
computers and Microsoft operating system
 Portfolio- Office 365 has diversified the scope and arena of the product range
 Parenting- Monitoring the lines through which the resources are allocated
(Microsoft.com, 2019)
Business level strategy
Comparative policies are used for securing the core value of Office 365 from the
competitors like G-suite productivity. Cheaper rates of the services is apt in terms of

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attracting large number of customers. In this, mention can be made of the cost leadership and
differentiation strategies for the improvising on the standards and quality of the services.
Functional strategy
Coordination between the functional units is assistance in terms of the conducting
sales operation, finance, marketing, research and development effectively through the means
of information systems (Microsoft.com, 2019).
C) Strategy implementation by Microsoft
 Employees are the main personnel in the process of strategy implementation. Training
and workshops are conducted for assessing the skills, knowledge and competencies
needed by the employees for implementing the strategies.
 Assessment of the resource allocation is executed prior to the activity of strategy
implementation. In this, the time taken for implementing the strategy is also
considered for mapping the outcomes.
 Functional and divisional organizational structure is adopted for the maintaining the
professional hierarchies for completing the business operations. This type of structure
is fruitful in terms of disseminating the necessary information to the stakeholders and
shareholders (Microsoft.com, 2019).
 Incentives, rewards and feedbacks develop positive and healthy workplace culture,
needed for effective strategy implementation.
D) Strategy evaluation of Microsoft
 Feedbacks from the stakeholders and shareholders is crucial for measuring the
effective of the strategies in accordance to the developed performance indicators.
 Key performance indicators help the personnel in mapping the appropriateness of
the strategies in the current strategic condition of the market.

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 Balanced scorecards and performance management systems are assistance for
conducting audits and reviews for the exposed performance for making estimation
for sales forecasting (Microsoft.com, 2019)
 Variance analysis- Comparative analysis proves beneficial in terms of assessing
the modifications needed for reaching to the benchmark level of performance.
Within this, an important aspect is degree of tolerance, which demarcates the gap
between actual and the exposed performance. Discovery of negative deviation
reflects the need for undertaking modification measures (Microsoft.com (2019).

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References
Anz.com.au (2019). About us. Retrieved 13th May 2019 from
https://www.anz.com.au/personal/
Anz.com.au (2019). HR and payroll. Retrieved 13th May 2019 from
https://www.anz.com.au/business/manage-employees/hr-payroll/
Bondarenko, T. G., Isaeva, E. A., Orekhov, S. A., & Soltakhanov, A. U. (2017). Optimization
of the company strategic management system in the context of economic instability.
European Research Studies, 20(2), 3.
Durand, R., Grant, R. M., & Madsen, T. L. (2017). The expanding domain of strategic
management research and the quest for integration. Strategic Management Journal,
38(1), 4-16.
Gans, J., & Ryall, M. D. (2017). Value capture theory: A strategic management review.
Strategic Management Journal, 38(1), 17-41.
Ikea.com (2019). About us. Retrieved 14th May 2019 from https://www.ikea.com/
Koc, T., & Bozdag, E. (2017). Measuring the degree of novelty of innovation based on
Porter's value chain approach. European Journal of Operational Research, 257(2),
559-567.
Microsoft.com (2019). About us. Retrieved 14th May 2019 from
https://www.microsoft.com/en-in
Pg.com (2019). About us. Retrieved 14th May 2019 from https://us.pg.com/
Prajogo, D., Oke, A., & Olhager, J. (2016). Supply chain processes: Linking supply logistics
integration, supply performance, lean processes and competitive performance.
International Journal of Operations & Production Management, 36(2), 220-238.

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Volkswagen.com (2019). About us. Retrieved 15th May 2019 from
https://www.volkswagen.com/