DAM762: Strategic & Operational Management Analysis of ANZ and Ford

This report provides an analysis of strategic and operational management concepts, using ANZ New Zealand and Ford Motor Corporation as case studies. It examines ANZ New Zealand's internal resources, capabilities, and external factors using PEST analysis, and discusses its sustainability targets and strategy implementation. The report also explores Ford New Zealand's quality and supply chain management practices. Furthermore, it critiques Porter's Five Forces model and the Value Chain model, applying Porter's Five Forces to Procter & Gamble (P&G) and the Value Chain model to IKEA, evaluating the advantages and disadvantages of each model in the context of these organizations. The analysis provides a comprehensive overview of strategic and operational considerations within different industries and organizational structures.

Running head - STRATEGY AND OPERATIONAL MANAGEMENT
Strategy and Operational Management
Name of the student
Name of the university
Author’s Note

1STRATEGY AND OPERATIONAL MANAGEMENT
Question 1 (a)
Strategy Formulation is the process through which any organization selects the most
suited strategy to meet the goals. ANZ New Zealand is one of the most reputed bank in the
country. The bank have an excellent strategic management process.
i. The following paragraph would be discussing about ANZ New Zealand’s current
internal resources and capabilities. Internal resources are classifies as the system,
space, budgets and profits. ANZ New Zealand have improved system that rest of the
banks in the country. The bank have adapted changes in remuneration and new codes
of practices. The bank have developed a great profit from there operations in the
recent years. The bank have been reducing reliance on every low return aspects for
international business. They have been strengthening the balance sheet by maintaining
balanced portfolio.
Fig – 1 Income statement of ANZ bank
Source – (ANZ Bank New Zealand Ltd | Online Banking | ANZ. (2019).
The bank have been capable of producing houses in Australia and New Zealand much
easier than before. Environmental sustainability have been developed after the bank have
shifted to digitalization. ANZ have been building more convenient ways in solving the

2STRATEGY AND OPERATIONAL MANAGEMENT
banking problems that would simply the customer’s lives. They are also capable of
helping in starting new small businesses in Australia and New Zealand.
ii. The analysis of the current external factor that could affect the bank could be
studied with the help of PEST analysis (Igliński et al., 2016)
Political Factor – Political changes have been in New Zealand in every three years,
where the government makes new laws and regulations. The country have strict labor
laws. Political system have provided freedom to the organizations to pursue their business
in peace.
Economical Factor – The country’s economic structure have been in check and been
excellent throughout the decades. Inflation rate have been low and there have been less
number of unemployment in the country. Products rates are considerably economical.
Social Factor – New Zealand have enjoys a terribly well-structured social system.
Literacy rate in the country is 100% which is excellent in producing quality socio-
economic structure. New Zealand’s banking system is quite good that allows investment
from foreign countries.
Technological Factor – New Zealand have developed itself in the field of technologies.
Rural areas in the country are now in using internet to conduct business.
iii. ANZ bank have targeted public sustainability every years and have considered to
conduct group programs that would help them in supporting sustainability issues. The
targets that the bank have set are building excellent workplace for the employees, by
providing support for financial wellbeing.

3STRATEGY AND OPERATIONAL MANAGEMENT
Strategy Implementation
i. The bank have been in the process to guide each of the section they deal with such as
industry, transactions and customer dealing. This helps them in aligning their purpose
and values.
ii. The monitoring and evaluation of the strategies that have been implemented by the
bank is done in several processes. The members of the management in the bank take
part in discussions with the CEO and other board of members. The members of the
bank process discussions that help them in understanding ongoing updates about the
bank programs and conducts of their businesses.
Question 1(b)
Operational Management can be defined as the administrative practices of business
that is used to create the highest possible level of efficiency that an organization could
achieve. The process is aligned with the converting labors and material into services provided
and production.
For the following analysis of Quality Management and Supply chain Management,
Ford New Zealand have been chosen.
Quality Management of Ford Motor Corp (New Zealand)
Ford have been changing the shape of automotive industry in the face of the world.
With the recent technological development in the Ford Focus series, the company is up to
launching it in New Zealand.
With the collaboration of companies like ChemFil, which is a daughter company of
PPG Industries, Ford is on the quest of producing products that are better in quality, good
work environment and effectiveness in the management. Ford produced better car paints with

4STRATEGY AND OPERATIONAL MANAGEMENT
the upgrade that they received in the paint process with the joint venture with ChemFil. The
organization was conducting surveys that would help them in knowing the quality that they
needed to produce for the customers.
The company have conducted extensive improvements in their cars for better
customer satisfaction and advancement in technologies that a modern car could sustain. Ford
Motor Corp have increased their car’s efficiency by making the car consume less fuel, have
provided advance system of safety and given attractive looks to the cars (Ross, 2017).
Ford have not only maintained their quality in respect to cars, but also have upgraded
their employees’ engagement in the production and work place. The organization have
developed employee motivation campaigns that includes opportunities for the employee’s to
learn about the cars and also test drive the pre-released cars.
Supply Chain Management of Ford Motor Corp (New Zealand)
Ford Motor Corporation have initiated numbers of ways that have been aimed for
positioning the organization in favorable places from where there would be the maximum
number of sales and supplies throughout the region. The organization have also taken in
account many historical aspects for integrating virtual strategies for supply management.
The company have set many production facilities by 1980’s, from where the complex
network of supply and management could be controlled and monitored for having the
maximum amount of supplies. Ford would provide preferences to suppliers on the basis of
cost management and overall cost chain of supply. With this process, the company was able
to deal with the complexity of such immensely large supply network (Christopher, 2016).
The corporation have shifted strategies of supply in long term sustainability with the
addition to subsystem of vehicle operation. The tier 1 supplier were entitled to manage the
bonding with bases of large supplier that have components of tier 2 subsystem and their

5STRATEGY AND OPERATIONAL MANAGEMENT
below level supplier. Ford also added upgrade in their supply management with the help of
just-in-time inventory.
Fig – 2 (Showing the traditional supply chain model that Ford Motor corporation
follows)
(Source – Author)
Question 2 (a)
Professor Michael Porter’s Five Force Model for Competitive strategic management
was made in a manner to understand the aspects that were needed for any organization to
understand the circumstances for their operation (Zhao et al., 2016).
Supplier
Manufacturer
Distribution Channels
Customer

6STRATEGY AND OPERATIONAL MANAGEMENT
To critique the model, understanding the advantages and disadvantages of the model
is needed.
Advantages of Porter’s five force Model –
1. The model would help an organization in monitoring there competitions for operation
in the market.
2. With the help of the model, the company would be able to analysis the possible
threats from their investments.
3. It would help in dealing with buyers and supplier at the same time.
Disadvantages of Porter’s Five force Model –
1. The model only follows their factor, ignoring other possible aspects that could affect
the organization.
2. For the implication of the model, there is no industry where the model would fit
perfectly without any drawback.
3. Industries like technology and fashion, the model would not help in achieving desired
results for the analysis of the company.
Question 2 (b)
Applying Porter’s Five Force Model on P&G Ltd.
Procter & Gamble shows competitive strategic management to compete with other
industries in the market. With the help of Porter’s five force model, P&G would analyze the
potential market threats, maintain bargaining power over buyer, analye their bargaining
power over suppliers, know their competition, and also threat from any new arrivals, by
practicing strategic management too.

7STRATEGY AND OPERATIONAL MANAGEMENT
Analyzing the competition – With the determination of potential rivalry in the
market, P&G would be beneficial in knowing the advantages that they possess in means of
production, customers aspects or any other means that is necessary for gaining profit in the
market. With the help of Porter’s Five Forces, these elements would be highlighted for
analyzing the competition of P&G. External factors like growing of other large firms, growth
of other alike industries and low cost for switching would influence the competition of P&G.
Bargaining Power of P&G over Consumers – The prior aim of P&G have been set
to target for maximizing customer’s satisfaction and attract as much as consumers towards
their produced goods. Apart from these internal factors, the external factors that deals with
the bargaining power are low cost for switching, low substitute availability and overall high
demand in market. The low switching cost have helped P&G in gaining maximum customer
and the prime reason for this factor is maintaining customer from not switching to other
brands.
Bargaining Power of P&G over Suppliers – P&G are supported by their suppliers
for the availability of materials like raw supplies and other materials needed for the
manufacturing of products needed of business operation. The external factors dealing with
Proctor & Gamble’s bargaining power over suppliers are forward integration of moderate
degree, overall supply level, and the population of suppliers. These external factor enforces
the factors needed for consumer goods for Proctor & Gamble.
Threat form Substitutes of P&G – There are products in the market that could be
considered or used as replica or substitute for the products made by P&G. These products
could act as element of forces on the organization. Elements other than the internal factors
such as variety of other substitute and lower cost for switching are the external factors. These

8STRATEGY AND OPERATIONAL MANAGEMENT
external factors are considered for having effect on the products available in the market
manufactured by P&G.
Thereat for P&G from New Entries – Performance in the marker of P&G could be
analyzed with the presence of other industries that are producing same products that are
manufactured by P&G. External factors that influence threats from new entries in the market
for P&G are cost of capital, economic scale for moderate intensity.
Question 2 (c)
Value Chain Model is conducted by companies for the analysis of production step by
step to create a product (Koc & Bozdag, 2017).
To critique the Porter’s value chain model, advantages and disadvantages o the chain
is to be analyzed.
Advantages of Value Chain –
1. The model would help any organization in creating competitive advantages of the
market.
2. Implication of the model would also help in strengthening the pre-existed
strategies that were developed by the organization for tackling competition in the
market.
3. The model also helps in ensuring values by monitoring that the values the
organization is creating is exceeding the cost or not.
Disadvantages of Value Chain –
1. The model fails any organization in analyzing the overall strategies for
competitive value analysis.

9STRATEGY AND OPERATIONAL MANAGEMENT
2. With the implication of the model, the vision of the organization is lost when the
operation are conducted into small segments.
3. The value chain is invalid in linking activities of operation in a chain.
Applying Value Chain Model on IKEA
The application of value chain model on IKEA would help in understanding the
framework that analytically identifies the activities related to business that could help in
creating value and advantage over the competition in the global market (Kehoe & Mateer
2015).
Inbound logistic of IKEA – The inbound logistic of IKEA helps in understanding the
associates of IKEA that are related in purchasing fresh good for manufacturing of the
products. IKEA have maintained a sustainable relationship with all their traders all over the
world. The source of creating values in the inbound logistic of IKEA also includes the scale
of economic stability and the application of strategic advantages over the suppliers (Bashir &
Verma 2017).
Operations conducted by IKEA – The three divisions of IKEA would be
Franchises, Finance and Property division through which IKEA conducts each of its
operation. The core division of IKEA would be the division that deals with franchises. The
de-centralization model that IKEA follows as a strategic management is useful in running
the business for achieving global operations. The major value source that IKEA relates with
its conduct of operation would be the benefit from cost.
Outbound Logistic of IKEA – The outbound logistic of IKEA are dependent for
managing the distribution facilities that IKEA have developed all over the globe. Mainly,

10STRATEGY AND OPERATIONAL MANAGEMENT
customers are responsible for the associations related to cost that is required of the
transportation of the products that customer purchases from the stores of IKEA.
Services produced by IKEA – The customer service that IKEA offers could be
demonstrated as an important activity in the value chain model that is followed IKEA. The
organization have set practices and techniques lie providing service and clarification issues
over telephone and the internet (Brea‐Solís, Casadesus‐Masanell & Grifell‐Tatjé, 2015).

11STRATEGY AND OPERATIONAL MANAGEMENT
Question 3 (a)
For the analysis of operational management and its effect on evaluating the four
critical factors for strategic management practices, the company that have been selected is
Datacom Group Limited.
Analyzing and assessment phase of strategic management practice of Datacom Group
Limited:
In initial phase of creating any strategies depends on management team of the
organization. The management team of Datacom Group Limited comes together to discuss
about the challenges and issues faced by the organization in conducting business in the IT
sector. They review all the aspects that is needed for creating a strategic plan (Holle et al.,
2017).
The common way in analyzing the effectiveness of a strategic plan before
implementation is conducting a SWOT of the company after the implication of the strategic
plan. With the use of SWOT analysis, the strengths and capabilities of the company would be
monitored that how the strategic plan is helping in enhancing the organization (Smith &
Gallicano, 2015).
Datacom Group Limited is enabled in designing and building technological platforms
that would help applications in doing and maintaining sustainable business (Sánchez, 2015).
There strategic plan is based on centralized conduction of business that deals with financial
issues maintaining the organizational needs and goals at prime aspect to focus on. From
financial point of view, creating and reaching a high profit margin is the prime goal of the
strategic plan. The assessment of this plan is done with the implication of this model on the
organization and overviewing the vision and goals of the organization being intact (Wegner,
2018).

12STRATEGY AND OPERATIONAL MANAGEMENT
Question 3 (b)
Strategy formulation phase of strategic management practice of Datacom Group
Limited
The formulation of the strategic plan is done before the start of manufacturing any
product in the manufacturing facilities (Karami, 2016). . The members of the strategic
management group involve themselves into clear purpose of developing strategic plans to be
implied on the organization. The members of apex management at Datacom gather together
to review all the issues that are faced by the organization or would be faced by the
organization in future regarding manufacturing, handling the customer, in distribution and
generating revenue from the sold products (Satyro et al., 2017).
SOWT analysis of the company is done in order to oversee the strengths, weakness,
opportunities and the threats that Datacom would face in the global market. The identification
of gaps in the organizations is necessary of the formulation of strategic plan. With the
information gathered for the analysis, the organization formulate the most suitable strategic
plan for Datacom that would help them in creating and conducting business in the global
market (Engert & Baumgartner, 2016).
Question 3 (c)
Implementation of the strategic plan of Datacom Group Limited
After the formulation of the strategic plan, the members at apex management of the
Datacom Group Limited, the next step for the organizational management if the
implementation of the formulated strategic plan. Datacom follows a common method for the
implementation of the plan that is the hoopla-a total effort for communication (Elbanna,
Andrews & Pollanen, 2016). The implementation of this plan follows the steps that have the
involvement of poster generation, memos, video creation of the plan, website creation for
preaching the new plan and campaigns (Engert & Baumgartner, 2016).

13STRATEGY AND OPERATIONAL MANAGEMENT
Another tool that helps in implementation of the formulated strategic plan is the
strategic management that provides window for Datacom for appropriate measurement of the
strategy, its importance and its effectiveness for the leaders. The operational management of
the plan would help in the measuring the increase in the strategic factors and the work frame.
(Grant, 2016).
Question 3 (d)
Evaluating the strategic phase of Datacom Group Limited
The evaluation of the strategic plans on the basis for seeing the organizational goals,
if the goals are same or they have changed. The goals set by Datacom is providing better
technological platform for businesses. It have to be kept in mind that the implied strategic
plan should not change the prime goals of Datacom (Wheelen et al., 2017).
The evaluation of the strategic plan is to be done on the basis where the plan helps the
organization in evolving as customers need evolution. The skilled leaders of Datacom should
keep in mind that the formulated strategic plan should help the organization is evolving the
platforms and making it much more user friendly for the customers. The more evolved the
platform would be, the more it would sell. Thus, the strategic plan would be evaluated with
proper analysis (Nudurupati et al., 2015).

14STRATEGY AND OPERATIONAL MANAGEMENT
References
Bashir, M., & Verma, R. (2017). Why business model innovation is the new
competitive advantage. IUP Journal of Business Strategy, 14(1), 7.
Brea‐Solís, H., Casadesus‐Masanell, R., & Grifell‐Tatjé, E. (2015). Business Model
Evaluation: Quantifying W almart's Sources of Advantage. Strategic Entrepreneurship
Journal, 9(1), 12-33.
Christopher, M. (2016). Logistics & supply chain management. Pearson UK.
Elbanna, S., Andrews, R., & Pollanen, R. (2016). Strategic planning and
implementation success in public service organizations: Evidence from Canada. Public
Management Review, 18(7), 1017-1042.
Engert, S., & Baumgartner, R. J. (2016). Corporate sustainability strategy–bridging the gap
between formulation and implementation. Journal of cleaner production, 113, 822-834.
Engert, S., & Baumgartner, R. J. (2016). Corporate sustainability strategy–bridging
the gap between formulation and implementation. Journal of cleaner production, 113, 822-
834.
Grant, R. M. (2016). Contemporary strategy analysis: Text and cases edition. John
Wiley & Sons.
Holle, D., Halek, M., Holle, B., & Pinkert, C. (2017). Individualized formulation-led
interventions for analyzing and managing challenging behavior of people with dementia–an
integrative review. Aging & mental health, 21(12), 1229-1247.
Igliński, B., Iglińska, A., Cichosz, M., Kujawski, W., & Buczkowski, R. (2016).
Renewable energy production in the Łódzkie Voivodeship. The PEST analysis of the RES in
the voivodeship and in Poland. Renewable and Sustainable Energy Reviews, 58, 737-750.

15STRATEGY AND OPERATIONAL MANAGEMENT
Karami, A. (2016). Strategy formulation in entrepreneurial firms. Routledge.
Kehoe, K., & Mateer, J. (2015). The impact of digital technology on the distribution
value chain model of independent feature films in the UK. International journal on media
management, 17(2), 93-108.
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.
Nudurupati, S. S., Bhattacharya, A., Lascelles, D., & Caton, N. (2015). Strategic
sourcing with multi-stakeholders through value co-creation: An evidence from global health
care company. International Journal of Production Economics, 166, 248-257.
Ross, J. E. (2017). Total quality management: Text, cases, and readings. Routledge.
Sánchez, M. A. (2015). Integrating sustainability issues into project
management. Journal of Cleaner Production, 96, 319-330.
Satyro, W. C., Sacomano, J. B., Contador, J. C., Almeida, C. M., & Giannetti, B. F.
(2017). Process of strategy formulation for sustainable environmental development: Basic
model. Journal of cleaner production, 166, 1295-1304.
Smith, B. G., & Gallicano, T. D. (2015). Terms of engagement: Analyzing public
engagement with organizations through social media. Computers in Human Behavior, 53, 82-
90.
Wegner, D. L. B. (2018). Centralized and Decentralized Decision Making Structures
in the Banking System: A Preliminary Model.
Wheelen, T. L., Hunger, J. D., Hoffman, A. N., & Bamford, C. E. (2017). Strategic
management and business policy (p. 55). Boston: pearson.

16STRATEGY AND OPERATIONAL MANAGEMENT
Zhao, Z. Y., Zuo, J., Wu, P. H., Yan, H., & Zillante, G. (2016). Competitiveness
assessment of the biomass power generation industry in China: A five forces model
study. Renewable Energy, 89, 144-153.