Tutorial 2 Question 1 Company X is a diversified business with subsidiaries in very different business areas. It is organised with each subsidiary being a separate division. Company Y is a multinational with different parts of the supply chain in different countries. It is also divisionalised. Required: comment on the differences in performance management issues for each company.

Question 2 The idea of the network organisation emphasises: the decentralisation of control the creation of more flexible patterns of working a greater empowerment of the workforce the displacement of hierarchy by team working the development of a greater sense of collective responsibility the creation of more collaborative relationships among co-workers. Required: Comment on the importance of information to such an organisation.

Question 3 State the performance measures that may be used in order to assess the surgical quality provided by a hospital indicating how each measure may be addressed.

Question 4 Kudos Guitar Amplifiers (KGA) Kudos Guitar Amplifiers (KGA) was set up by Phil Smith two years ago in the UK. Phil, an electrical engineer and musician, started repairing and then building guitar amplifiers for himself and friends. Initially Phil based his amplifiers around existing classic circuits but soon discovered a potential to tweak these to produce modern variations and improved tones. Partly as a result of the excellent sound but also the low prices compared to established brands, Phil soon found himself inundated with requests and so started the business and employed more staff. The big break came when a number of high profile professional musicians started using KGA amplifiers. Despite operating in a highly competitive market sector, Phil has struggled to meet demand since and has waiting lists for the hand-built, top of the range models, even having increased prices considerably. Phil is looking to expand the business further, extend the range of products offered to include cheaper models and look to sell into additional markets. He has recruited more staff, built a state of the art, dedicated factory and appointed managers. To ensure the longevity of his business. Phil commissioned a strategic consultant who advised him to adopt a competitive strategy of differentiation. Extracts from the value chain analysis produced by the consultant are as follows: Inbound logistics As well as Phil's proprietary circuit designs, part of the sound of KGA amplifiers comes from the use of rare "new old stock" (NOS) components, some originally manufactured in the 1960s. Locating sufficient numbers of such components to the required quality is a major challenge and it is felt that KGA's relationship with two key suppliers is vital. Operations The top of the range models are hand built by master craftsmen with point to point wiring and specialist components. Given normal variations in some of these, different elements are tested and matched by ear to optimise tonal characteristics. Extensive quality control tests are done before an amplifier is ready for sale. Newer, cheaper models use pre-assembled circuit boards bought from a SE Asian supplier. The factory also uses "clean room" technologies and fume extraction safety processes that far exceed current industry requirements and add to the factory running costs. Outbound logistics Originally selling direct to customers, Phil has now agreed distribution contracts with two national UK retailers and is hoping to secure similar deals in Germany and the USA. Marketing and sales Marketing currently consists of word of mouth, advertising in guitar magazines and sponsorship of high profile musicians. The company will also be setting up a website and Facebook page. It is felt that continued publicity from famous guitarists and online exposure are vital to achieving growth targets. The new ranges have the same brand name as the original hand-built products. Service Phil offers a lifetime warranty on his top of the range amplifiers with a guaranteed turnaround of 5 days, although he did have a problem repairing an amplifier in time for a rock band headlining at a major festival. Cheaper ranges have an industry standard 12 months' warranty. Required Identify the performance management issues arising from the above analysis.

Question 5 A business process is a series of activities that are linked together in order to achieve given objectives. For example, materials handling might be classed as a business process in which the separate activities are scheduling production, storing materials, processing purchase orders, inspecting materials and paying suppliers. Required: Suggest ways in which materials handling might be re-engineered