CIPS L6M2 問題集

質問 1：
SIMULATION
Explain the characteristics of strategic decisions. At what level of a business are strategic decisions made and why?
正解：
Characteristics of Strategic Decisions
Strategic decisions are long-term, high-impact choices that shape a company's future direction. These decisions differ from operational and tactical decisions in several key ways:
Long-Term Focus - Strategic decisions determine the future direction of a business, often spanning several years.
Example: A company deciding to expand into international markets.
Significant Impact - They affect the entire organization, influencing growth, profitability, and market positioning.
Example: A shift from a brick-and-mortar retail model to an e-commerce-based approach.
Resource Intensive - They require large financial, human, and technological resources to implement.
Example: Investing in AI-driven supply chain automation.
High Risk and Uncertainty - These decisions involve considerable risks due to market changes, competition, and external factors.
Example: Entering an emerging market with regulatory and political risks.
Difficult to Reverse - Strategic decisions are not easily changed without significant costs or consequences.
Example: Mergers and acquisitions require extensive planning and are challenging to undo.
Cross-Functional Involvement - They require input from multiple departments (finance, marketing, operations, IT).
Example: A new product launch involves R&D, marketing, supply chain, and finance teams.
Aimed at Gaining Competitive Advantage - The goal is to improve the company's market position and long-term success.
Example: Tesla's focus on electric vehicle technology and charging infrastructure.
At What Level Are Strategic Decisions Made?
Strategic decisions are made at the corporate and business levels, typically by senior management and executives. The three levels of decision-making in a company are:
1. Corporate-Level Decisions (Top Management)
Made by the CEO, Board of Directors, and Senior Executives.
Concerned with the overall direction of the company.
Focuses on long-term objectives, market expansion, mergers & acquisitions.
Example: Amazon's decision to acquire Whole Foods to expand into the grocery industry.
2. Business-Level Decisions (Middle Management)
Made by Divisional Heads, Business Unit Managers, and Senior Functional Leaders.
Focuses on how to compete effectively within a specific industry or market.
Covers areas such as pricing, product differentiation, and operational efficiency.
Example: Netflix shifting from a DVD rental business to a streaming service.
3. Functional-Level Decisions (Operational Managers)
Made by Department Heads, Operational Managers, and Team Leaders.
Concerned with day-to-day implementation of strategic and business-level plans.
Focuses on efficiency, productivity, and execution of company strategy.
Example: A supply chain manager optimizing inventory levels to reduce costs.
Why Are Strategic Decisions Made at the Corporate and Business Levels?
Require Vision and Expertise - Senior executives have the big-picture perspective needed for long-term planning.
Affect the Entire Organization - These decisions impact multiple departments, requiring cross-functional coordination.
High-Risk and Costly - Strategic choices involve financial investments, brand reputation, and market positioning.
Long-Term Focus - Corporate-level leaders ensure that decisions align with the company's mission, vision, and goals.
Conclusion
Strategic decisions shape the company's future, requiring careful planning, significant investment, and risk assessment. They are made at the corporate and business levels because they impact the entire organization, require expert leadership, and have long-term consequences.

質問 2：
SIMULATION
Discuss the following strategic decisions, explaining the advantages and constraints of each: Market Penetration, Product Development and Market Development.
正解：
Evaluation of Strategic Decisions: Market Penetration, Product Development, and Market Development Introduction Strategic decisions in business involve selecting the best approach to grow market share, increase revenue, and sustain competitive advantage. According to Ansoff's Growth Matrix, businesses can pursue four strategic directions:
Market Penetration (expanding sales in existing markets with existing products) Product Development (introducing new products to existing markets) Market Development (expanding into new markets with existing products) Diversification (introducing new products to new markets) This answer focuses on Market Penetration, Product Development, and Market Development, discussing their advantages and constraints.
1. Market Penetration (Increasing sales of existing products in existing markets) Explanation:
Market penetration involves increasing market share by:
✅ Encouraging existing customers to buy more.
✅ Attracting competitors' customers.
✅ Increasing promotional efforts.
✅ Improving pricing strategies.
Example: Coca-Cola uses aggressive marketing, promotions, and pricing strategies to increase sales in existing markets.
Advantages of Market Penetration
✔ Low Risk - No need for new product development.
✔ Cost-Effective - Uses existing infrastructure and supply chain.
✔ Builds Market Leadership - Strengthens brand loyalty and customer retention.
✔ Quick Revenue Growth - Increased sales generate higher profits.
Constraints of Market Penetration
❌ Market Saturation - Limited growth potential if the market is already saturated.
❌ Intense Competition - Competitors may retaliate with price cuts and promotions.
❌ Diminishing Returns - Lowering prices to attract customers can reduce profitability.
Strategic Consideration: Businesses should assess customer demand and competitive intensity before implementing a market penetration strategy.
2. Product Development (Introducing new products to existing markets)
Explanation:
Product development involves launching new or improved products to meet evolving customer needs. This can include:
✅ Innovation - Developing new features or technology.
✅ Product Line Extensions - Introducing variations (e.g., new flavors, models, packaging).
✅ Customization - Tailoring products to specific customer preferences.
Example: Apple frequently launches new iPhone models to attract existing customers.
Advantages of Product Development
✔ Higher Customer Retention - Keeps existing customers engaged with new offerings.
✔ Brand Differentiation - Strengthens competitive advantage through innovation.
✔ Increases Revenue Streams - Expands product portfolio and market opportunities.
Constraints of Product Development
❌ High R&D Costs - Requires investment in innovation and testing.
❌ Market Uncertainty - New products may fail if not aligned with customer needs.
❌ Risk of Cannibalization - New products may reduce sales of existing products.
Strategic Consideration: Businesses should conduct market research, prototyping, and feasibility analysis before launching new products.
3. Market Development (Expanding into new markets with existing products) Explanation:
Market development involves selling existing products in new geographical areas or customer segments. Strategies include:
✅ Expanding into international markets.
✅ Targeting new demographics (e.g., different age groups or industries).
✅ Entering new distribution channels (e.g., e-commerce, retail stores).
Example: McDonald's expands into new countries, adapting its menu to local preferences.
Advantages of Market Development
✔ Access to New Revenue Streams - Increases customer base and sales.
✔ Diversifies Market Risk - Reduces dependency on a single region.
✔ Leverages Existing Products - No need for costly product innovation.
Constraints of Market Development
❌ Cultural and Regulatory Barriers - Differences in consumer behavior, legal requirements, and competition.
❌ High Entry Costs - Requires investment in marketing, distribution, and local partnerships.
❌ Operational Challenges - Managing supply chains and logistics in new markets.
Strategic Consideration: Businesses should conduct market analysis and risk assessments before expanding internationally.
Conclusion
Each strategic decision has unique benefits and challenges:
✅ Market Penetration is low-risk but limited by market saturation.
✅ Product Development drives innovation but requires high investment.
✅ Market Development expands revenue streams but involves cultural and regulatory challenges.
The best approach depends on a company's competitive position, financial resources, and long-term growth objectives.

質問 3：
SIMULATION
Discuss how the following can impact upon supply chain operations and business strategy:
1) Discrimination, equality and diversity
2) Redundancy and dismissal
3) Working time and payment
正解：
Impact of Employment Policies on Supply Chain Operations and Business Strategy Introduction Employment policies such as discrimination, equality and diversity, redundancy and dismissal, and working time and payment have a significant impact on supply chain operations and business strategy. These factors influence employee productivity, legal compliance, reputation, and operational efficiency.
For businesses operating in global supply chains, ensuring compliance with employment laws and ethical workforce practices is crucial to maintaining sustainability, cost efficiency, and risk management.
1. Impact of Discrimination, Equality, and Diversity on Supply Chain Operations and Business Strategy Discrimination laws and diversity and inclusion (D&I) policies ensure fair treatment in the workplace.
✅ Impact on Supply Chain Operations
Companies must prevent workplace discrimination across hiring, promotions, and supplier engagement.
Non-compliance with equality laws can lead to legal penalties, reputational damage, and operational disruptions.
Supply chain leaders must promote diverse supplier partnerships and inclusive hiring practices.
Example: Many multinational corporations, such as Unilever and IBM, have supplier diversity programs that prioritize working with minority-owned and women-owned businesses.
✅ Impact on Business Strategy
Encourages innovation and diverse perspectives in problem-solving.
Enhances brand reputation and customer loyalty through ethical business practices.
Helps businesses attract top global talent by fostering an inclusive workplace.
Strategic Action: Businesses should implement anti-discrimination training and diversity recruitment strategies to create a fair and inclusive work environment.
2. Impact of Redundancy and Dismissal on Supply Chain Operations and Business Strategy Redundancy and dismissal policies regulate how companies terminate employment due to economic downturns, automation, or restructuring.
✅ Impact on Supply Chain Operations
Workforce reductions can disrupt production schedules and supplier relationships.
Companies must ensure fair redundancy policies to prevent legal claims or industrial action.
Automation may lead to worker displacement, requiring retraining programs.
Example: Ford's decision to restructure operations in the UK resulted in job losses, requiring compliance with UK redundancy laws and union negotiations.
✅ Impact on Business Strategy
Must balance cost-cutting measures with employee morale and brand reputation.
Need to comply with national and international labor laws to avoid legal action.
Investing in employee retraining and redeployment can reduce negative effects of redundancy.
Strategic Action: Businesses should establish clear redundancy frameworks, provide severance packages, and offer outplacement support for affected employees.
3. Impact of Working Time and Payment on Supply Chain Operations and Business Strategy Working time regulations and fair wage policies impact labor costs, productivity, and compliance.
✅ Impact on Supply Chain Operations
Ensuring compliance with working time laws (e.g., UK Working Time Regulations 1998) prevents overworking employees.
Failure to meet minimum wage and overtime regulations can lead to legal disputes.
Supply chains must ensure fair pay for workers in offshore factories to meet ethical sourcing standards.
Example: The UK National Minimum Wage Act ensures fair wages, while the Modern Slavery Act (2015) prevents exploitation in global supply chains.
✅ Impact on Business Strategy
Fair wages enhance employee motivation and reduce turnover.
Complying with wage and hour laws prevents reputational risks and fines.
Ethical pay practices attract conscious consumers and investors.
Strategic Action: Businesses should conduct regular wage audits and ensure global supplier compliance with fair labor laws.
Conclusion
Employment policies related to discrimination, redundancy, and working time/pay significantly impact supply chain operations and business strategy. Companies must ensure:
✅ Diversity and equality policies to foster innovation and enhance reputation.
✅ Ethical redundancy and dismissal processes to maintain legal compliance.
✅ Fair wages and working hours to improve productivity and worker well-being.
By aligning HR policies with supply chain strategy, businesses can enhance efficiency, reduce risks, and build a sustainable competitive advantage.

質問 4：
SIMULATION
XYZ is a toilet paper manufacturer based in the UK. It has 2 large factories employing over 500 staff and a complex supply chain sourcing paper from different forests around the world. XYZ is making some strategic changes to the way it operates including changes to staffing structure and introducing more automation. Discuss 4 causes of resistance to change that staff at XYZ may experience and examine how the CEO of XYZ can successfully manage this resistance to change
正解：
Causes of Resistance to Change & Strategies to Manage It - XYZ Case Study When XYZ, a UK-based toilet paper manufacturer, implements strategic changes such as staff restructuring and automation, employees may resist change due to uncertainty, fear, and disruption to their work environment. Below are four key causes of resistance and how the CEO can manage them effectively.
Causes of Resistance to Change
1. Fear of Job Loss
Cause: Employees may fear that automation will replace their jobs, leading to layoffs. Factory workers and administrative staff may feel particularly vulnerable.
Example: If machines take over manual processes like paper cutting and packaging, employees may see this as a direct threat to their roles.
2. Lack of Communication and Transparency
Cause: When management fails to communicate the reasons for change, employees may speculate and assume the worst. Unclear messages lead to distrust.
Example: If XYZ's CEO announces restructuring without explaining why and how jobs will be affected, employees may feel insecure and disengaged.
3. Loss of Skills and Status
Cause: Some employees, especially long-serving workers, may feel their skills are becoming obsolete due to automation. Managers may resist change if they fear losing power in a new structure.
Example: A production line supervisor may oppose automation because it reduces the need for human oversight, making their role seem redundant.
4. Organizational Culture and Habit
Cause: Employees are accustomed to specific ways of working, and sudden changes disrupt routine. Resistance occurs when changes challenge existing work culture.
Example: XYZ's employees may have always used manual processes, and shifting to AI-driven production feels unfamiliar and uncomfortable.
How the CEO Can Manage Resistance to Change
1. Effective Communication Strategy
✅ What to do?
Clearly explain why the changes are necessary (e.g., cost efficiency, competitiveness).
Use town hall meetings, emails, and team discussions to provide updates.
Address employee concerns directly to reduce uncertainty.
Example: The CEO can send monthly updates on automation, ensuring transparency and reducing fear.
2. Employee Involvement and Engagement
✅ What to do?
Involve staff in decision-making to give them a sense of control.
Create cross-functional teams to gather employee input.
Provide opportunities for feedback and discussion.
Example: XYZ can form a worker's advisory panel to gather employee concerns and address them proactively.
3. Training and Upskilling Programs
✅ What to do?
Offer training programs to help employees adapt to new technologies.
Provide reskilling opportunities for employees whose jobs are affected.
Reassure staff that automation will create new roles, not just eliminate jobs.
Example: XYZ can introduce digital skills training for workers transitioning from manual processes to automated systems.
4. Change Champions & Support Systems
✅ What to do?
Appoint change champions (influential employees) to advocate for change.
Offer emotional and psychological support (e.g., HR consultations, career guidance).
Recognize and reward employees who embrace change.
Example: XYZ can offer bonuses or promotions to employees who successfully transition into new roles.
Conclusion
Resistance to change is natural, but the CEO of XYZ can minimize resistance through clear communication, employee involvement, training, and structured support. By managing resistance effectively, XYZ can ensure a smooth transition while maintaining employee morale and operational efficiency.