Business PCL II Core SHR Weekly Assignment (Aashima Jain)

8/3/2019 Business PCL II Core SHR Weekly Assignment (Aashima Jain)

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Assessment Front Sheet

IMPORTANT: Your assignment will not be accepted without the FRONT SHEET.

Campus: CHANDIGARH Stream: HR

Level: PCL- IIYear/Semester 2009-

2011

Module Name: OCPA Assignment Type: Assignment Modular

Students Name: Aashima Jain Assessors Name:

Issued on:Reqd. Submission

Date

Actual Submission

Date: Submitted to :Higher Level Skills

Students are expected to develop the following skills in this assignment:

Cognitive skills of critical thinking, analysis and synthesis.

Effective use of communication and information technology for business applications.

Effective self-management in terms of planning, motivation, initiative and enterprise.

Certificate by the Student:

Plagiarism is a serious College offence.I certify that this is my own work. I have referenced all relevant materials.

________________________

(Students Name/Signatures)EXPECTED OUTCOMES Assessment Criteria To achieve each outcome a

student must demonstrate the ability to :

Achieved (Y/N

.

Assignment Grading Summary (To be filled by the Assessor)

Grades Grade Descriptors Achieved Yes/No (Y / N

P A Pass grade is achieved by meeting all the requirements defined.M1 Identify and apply strategies to find appropriate solutions.

M2 Select/design and apply appropriate methods/techniques.

M3 Present and communicate appropriate findings.

D1Use critical reflection to evaluate own work and justify valid

conclusions.

D2Ability to anticipate and solve complex tasks in relation to the

assignment.

D3 Demonstrate convergent, lateral and creative thinking.

OVERALL ASSESSMENT GRADE:

TUTORS COMMENTS ON

ASSIGNMENT:

SUGGESTED MAKE UP PLAN

(applicable in case the student is

asked to re-do the assignment)

REVISED ASSESSMENT GRADE

TUTORS COMMENT ON

REVISEDWORK (IF ANY)

Date: Assessors Name / Signatures:


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Q1. What value creation strategy was adopted by TI

Cycles? How did it work for the company?

Before coming to the value creation strategy adopted by the TI Cycles it is necessaryto understand what is value creation. Value creation is to create a reasonedgrowth path for the future. Value creation is all about utility and functionalityand refers therefore, to those the company serves, rather than to those who own it.Profits and growth are the outcomes of effective value-creation logic. The valuecreation strategy adopted by TI cycles was based on value creation strategy as in UKas it was a joint venture. They built high quality, elegant bikes based ondrawings and designs from England. To successfully implement this strategythe company went for vertical integration. They built each and every componentrequired for bicycle manufacturing in - house. They also implementedorganization values and people process as per British expertise which lead thecompany to be a dominant manufacturing unit rather than customer oriented. As we

have seen what va lue c reat ion log ic is and a lso the s t ra tegy adoptedby TICycles and also after going through the case study I can concluded that thestrategy adopted by TI cycles did not work for the organization. Though at the initialstage company achieveds u c c e s s i n g e t t i n g p r o f i t b u t i t c o u l d n o t m e e t t h e c u s t o m e r n eed s as a l l t h e c y c l es manufac tu red by t hem were bas ed on t hedesigns from England where the needs of the customers was different thanthe Indian customers.


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Q2. Compare and contrast the value strategies of TI

Cycles and Hero Cycles. Which company had more profit

making capacity due to its value creation logic and why?

Ans.2The value strategies of TI Cycles & Hero Cycles can be stated as under:

TI CYCLES VALUE CREATION LOGIC:

Value creation at TI Cycles was based on UK expertise and they madea policy of vertical integration which means they started each and everyproduct i.e. from tubes to steel required for manufacturing cycles in house.Which though profitable for the company; but in cu rr ed hu ge co stand h igh labor turnover . Al l the des igns & drawings of cyc les

manufactured where from England.

HERO CYCLES VALUE CREATION LOGIC:

The value creation of Hero Cycles was towards customer satisfaction bymeeting its need and this is what they did. Hero Cycles developed itsproducts to meet specific Indian needs. It designed a cycle that could carrytwo people plus a heavy load , and that could be manufactured at the lowestpossible cost. Not quite as elegant as the BSA or Hercules models of TI and,

therefore, not perhaps as appropriate for spare time cycling. Its bicycles, onthe other hand, h e lped the farme rs o f Punjab car r y a heavy load of vegetables to the vil lage market. Instead of vertical integration like TICycles, Hero Cycles outsourced most of the components and focused oncreating a highly efficient assembly operation in-house.Indeed,to a s igni f icant exten t , He ro Cy c les c reate d lo cal c ompo nent suppl ier in f rast ruc tu re by inducing friends and family to set up ancillary units, oftensupporting them with both funds and technical assistance. Also before the concept of

just-in-time production became famous ;the Hero group adopted the system,leading to extremely low costs which allowed them to undercut the prices of

cycles as compared to TI Cycles for the cheapest models.

CONCLUSION:Hero Cycles had more profit due to its value creation and the reason arethat they made cycles which were according to the need s of the Indian Customermarket and also they developed new vendors for manufacturing heavy cycles and thusbecame a major competitor to TI Cycles.


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Q3. What lessons one can learn form its competitors

to design a successful plan for future growth.

Ans.3Lessons one can learn f rom i ts compe t i tors to des ign a success fu lplan for future growths areO n e k e y l e s s o n f r o m t h e a b o v e c a s e s t u d y i s t h a t n o c o mp a n y c a n a c h i e v e r a d i c a l performance improvement without transfor

ming resource productivity; the other equallyimportant lesson is that nocompany can achieve such results only through improvement in op era ti ngef f ic ienc ies . Jus t an overa l l v is ion and a log ica l p lan are not goodenough fo r creating a continuous growth process, to shape and manage the future acompany also needs the abili ty to effect ively act on the vision and implementthe plan. For managing growth, attention must be paid to both the contentand the process. A company needs to align clear value-creation logic with itsorganizing principles and people processes. It is exactly such apos i t ion that which has to suppor t or s t rengthen f rom beneath

the h is to r ica l success o f companies like Hero Cycles. Effective position leads tosuccess, resulting in both internalandex terna l sat is fac t ion, an d that sat is fac t ion fur ther supp or ts the pos i t ion. Over t ime, th issupporting process acquires greater and greater force, withthe position becoming tighter and tighter.

CONCLUSION:Thus we can s ta te that to des ign a success fu l p lan for fu ture growthwe should have the ab i l i t y to manage va lue c reat ion, pr inc ip les andpe op le s pr oc ess in su ch a wa y tha t th ey should be effective for long term

basis

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Business PCL II Core SHR Weekly Assignment (Aashima Jain)