₦airaland Forum

Strategic Road Map to Achieving Growth through Commitment on Workers’ Welfare: A Case Study of Nigerian Breweries Plc.



CHAPTER 1

EVIDENCE REVIEW

INTRODUCTION

Modern day scholars have repeatedly criticized traditional budgeting as an effective means of management control despite its popularity by Johnson and Kaplan in the mid-80s. There is no doubt that the 21st century’s volatile business environment and proven inadequacies of outdated management theories demand an urgent switch to a more responsive and rigid approach. Nigerian Breweries Plc (NB) needs an appropriate system of administration, with emphasis on budgeting and employees’ welfare, to remain competitive in a rapidly changing manufacturing industry which demands high-performing, experienced and motivated indigenous workers (Helmy., 2012). To achieve this purpose, a line must be drawn on the difference between actual and planned performance, including timely information reporting to integrate strategic management and budgeting for value creation that not only spurts profits but offers competitive advantage and sustainable growth.

For Nigerian Breweries to be effective, budgets must be synced with organizational goals. Furthermore, there is need for strategic planning and use of performance management processes that are value-based, productive and consistent. The problem, according to Tim Blumetritt is that most managers still treat strategic management practice and budgeting as disconnected fields, and many organizations do not engage in strategic planning (Wagar., 2013).

Nigerian Breweries, as a manufacturing company in a highly competitive industry, has battled challenges posed by the global economic recession, stiff competition from equally strong contenders, inadequate supply of raw materials, and most importantly, structural/management pitfalls, which demand workable adjustment plans to improve efficiency and achieve growth.

The aim of this research is therefore to answer the question:

What is the correlation between budgeting and management processes, and how will an integration of both factors offer growth?
How can a company achieve employee satisfaction?
STRATEGY ROAD MAP METHODOLGY

It has been rightly argued and acknowledged that an organization’s commitment to employee welfare is the most essential of all management activities. This strategic road map examines the determinants between workers’ needs and organizational goals as well as how these factors relate to overall productivity.

According to Beinhocker (2006) organizational commitment and employee productivity has been an emerging area of study and as the most pressing aspect of workforce management challenges experienced by managers of the past, present and future. A company’s growth or failure largely depends on how employee satisfaction is managed, and this obligation falls on the CEOs, management board, human resource managers, supervisors, project leaders and team captains, who have the responsibility of workers recruitment, placement, assessment, training and motivation. These can be achieved through different strategies with varied outcomes (Kreisman., 1998).

Strategy

Planning, organising, directing, budgeting and reporting are some of the integral parts of the management process in every company, and these factors are significant determinants of how a bureaucratic organization achieves its goals or is forced out of business by competitors. A visionary management often sees employees as its backbone and encourages teamwork, purposefulness, shared responsibilities, career development and individual recognition. Job security and commitment to workers’ private lives also provide motivation and boost loyalty, both of which have significant impact on productivity (Chesbrough H. and Rosenbloom R., 2002).

Proponents of strategy define it as a clearly thought-out design which offers competitive advantage to organizations when properly used. The management tool is often dynamic and tailored to suit any company’s values and missions, and this required users to continually appraise performance in order to determine its productiveness (Luecke., 2005).

However, Kaplan and Norton (2004) considered strategy as a line of action adopted by an organization to create value for customers, investors and society at large. The tool includes a period-based design of creativities with intended outcomes which are aligned to the goals, business position, and roadmap of an organization.

Howard and Cameron (2006) diverted from other purposes to which a strategy exists and argued that clarity of the management structure and practices as well as perfect understanding on the part of employees, are the basics of effective management. The performance of a strategy is therefore dependent on its outline or map and how managers impart the knowledge to its workers. This solves the problem of how value is to be created and to whom. Nonetheless, Kaplan and Norton admit, performance measurements are required to ascertain the effectiveness of a strategy implementation process for decisions on whether such activities should be adjusted or trashed.

The Balance Score Card (BSC) together with a strategy map offers an insight into links shared by an organization’s tangible and intangible resources. These tools are also useful in knowing what workers think of the existing management methods, rating the contributions from HR, and measuring consumer happiness for short and long-term financial planning.

Strategy map.jpg
Image 1: The Strategy Map Framework (Source: Kaplan and Norton)

The strategy map not only evaluates connections between tangible and intangible assets but focuses on how these can be utilized to create value through methods that guarantee sustainable growth. The strategy map and BSC can be understood through these standards:

It makes adjustments to the opposing forces of temporary monetary goals for price reduction and expanded profit.
It provides value via inner business process.
It functions with distinguished client offer since it considers satisfaction of customer needs as the core aspect of value creation.
Strategies are used to define value of an organization’s intangible resources, which are segmented into information, learning and growth perspective and human capital.
business strategy.png
Image 2: Five Stages of the Roadmap (Source: Eden and Ackerman)

Benefits of Strategy Roadmap

According to Eden and Ackerman (2011), a strategic roadmap guarantees employee productivity and ensures meaningful contributions to team assignments as well as enforce collaboration between management and staff. Other benefits are as follows:

It strengthens many objectives which include business placement and specialized methodologies.
It enhances communication between and among groups within and outside organizations.
It focuses on important aspects of management such as assets like time, ability and money, and often exploit these to achieve organizational goals.
It is useful in evaluating performance in line with the company’s business philosophy.


Image 3: Rockwater’s Strategic Objectives (Source: Meryer and Allen)

Building Strategies and Strategy Maps

The BSC and strategy map separate organizations from competitors and it has to show the links among a company’s inward activities as well as all intangible assets which provide competitive advantage.

Implementing and Updating the Strategy Map

A company’s strategic design explains what activities are to be performed and why, where or when. Results from the beginning drive workers through the implementation process, and since the planned activities are constant, the strategic road map is always adjusted for better results (Martins., 2013).

According to Paladino (2010), there is need for organizational activities and processes to be continuously reviewed and updated, where necessary, to achieve growth and sustainability. This is what the roadmap aims at. It shapes the outlines of a proposal for future activities and does not partake in basic decision-making or offers no understanding.

Limitations of the Strategy Roadmaps

Martin adds that the strategy map does not offer categorical explanation about what activities an organization chooses to undertake and why. It does not ask questions on assumptions.

Read more on: https://meziesblog.com/strategic-road-map-to-achieving-growth-through-commitment-on-workers-welfare-a-case-study-of-nigerian-breweries-plc/

Good job!

The sculptor of the Statue of Liberty was Federick Auguste Bartholdi


The port of Banku is situated in Azerbaijan

John F. Kennedy was assassinated by Lee Harry Oswald

The largest river in France is Lore

The Queen of England who married her brother-in-law was Catherine of Aragon

The first negro to be awarded the Nobel Peace Prize was Ralph Johnson Bunche

The first British University to admit women for degree courses was London University

The principal export of Jamaica is Sugar

New York is popularly known as the City of Skyscrapers

Madagascar is popularly known as the Island of Cloves

The country known as the Land of White Elephant is Thailand

The country known as the Land of Morning Calm is Korea

The country known as the Land of Thunderbolts is Bhutan

The highest waterfalls in the world is the Salto Angel Falls , Venezuela

The largest library in the world is the United States Library of Congress, Washington DC

Source: https://meziesblog.com/15-interesting-facts-you-should-know/

Don't destroy what you can't make, folks!

A Pablo Picasso painting worth a whopping $26m was destroyed at a museum in London. Media reports confirm that a 20-year-old man who attacked and destroyed the abstract art has been arrested and charged with criminal damage.

What a real damage for such an abstract art! 

Shakeel Ryan Massey is undergoing investigation for Saturday’s incident at Tate Modern.

Local media described the damaged artwork from Picasso as “Bust of a Woman.”

"Bust of a Woman" is a 75-year-old oil painting which depicts one of Picasso’s lovers, the photographer Dora Maar. The semi-abstract styled artwork shows Dora wearing a hat and green clothing while sitting on a black metal chair.

Speaking to newsmen about the costly masterpiece, a representative for Tate Modern said Shakeel was "swiftly apprehended" after vandalizing the property, adding that investigators are yet to determine the extent of the damage.

The BBC, however, acknowledged that Picasso's "Bust of a Woman" was ripped.

Findings show that Picasso's "Bust of a Woman" was completed in Paris in the month of May 1944, around the last days of WWII when Germans occupied the French capital. Picasso was said to have painted "Bust of a Woman" after most of his master’s friends were arrested and deported to Spain.

Tate's description of the painting reads, “‘Bust of a Woman’ and its associated series captures this complex moment of fear and hope that would lead Picasso to join the Communist Party in October 1944.”

Conversation experts have reportedly removed the painting from display for proper inspections.

According to Tate’s website, the painting has been on long-term loan from a private collection since 2011.

Massey, who is from northwest London, appeared before a judge at Camberwell Green Magistrates’ Court on Monday. He was held without bail. During his first hearing, the "heartless" suspect indicated he would deny the charges against him.

With this turn of events, the Inner London Crown Court will grant Massey a pretrial hearing on 30 January 2020, the Washington Post said.

Massey's attack on Picasso's 'Bust of a Woman' in Tate Modern comes after a famed Mark Rothko painting valued around $11 million was vandalized at the same gallery in 2012.

Tate Modern atracted nearly 6 million people in 2018, a record which made it the most-visited tourist attraction in Britain last year. The museum is located on the banks of the River Thames, where visitors gain several free offers to attend exhibitions. The London gallery displays lots of artwork from around the world.

Source: https://meziesblog.com/bust-of-a-woman-worth-26m-destroyed-in-london/

The earlier name of Srilanka was Ceylon

The UNO was formed in the year 1945

UNO stands for United Nations Organisation

The independence day of South Korea is celebrated on 15th August

`Last Judgement' was the first painting of an Italian painter named Michelangelo

`Paradise Regained' was written by John Milton

The first President of Egypt was Mohammed Nequib

The first man to reach North Pole was Rear Peary

The most famous painting of Pablo Picasso was Guermica

The primary producer of newsprint in the world is Canada

The first explorer to reach the South Pole was Capt. Ronald Amundson

The person who is called the father of modern Italy is G. Garibaldi

World literacy day is celebrated on 8th September

The founder of modern Germany is Bismarck

The country known as the land of the midnight sun is Norway

The place known as the Roof of the world is Tibet

The founder of the Chinese Republic was San Yat Sen

The first Pakistani to receive the Nobel Prize was Abdul Salam

The first woman Prime Minister of Britain was Margaret Thatcher

The first Secretary General of the UNO was Trygve Lie

Source: https://meziesblog.com/20-interesting-facts-you-should-know/

Consultancy Report to the Daily Sun on how it can compete in a declining market

EXECUTIVE SUMMARY

This report examines the challenges facing Nigeria’s Daily Sun newspaper as an agent of change and watchdog of the society. It reviews the survival strategies adopted by the company in its strategic business of nation-building and interfacing between the people and government in a largely uneducated, poverty-stricken society scorched by global economic recession. Admittedly, these daunting obligations and threats are most likely to annihilate profitability and push the publishing house out of business if adopted solutions prove ineffective. This study therefore examines the viability of print advertising, consumer-oriented marketing strategies, responsive business models and downsizing, as tools for reducing production cost and creating stakeholder value.

INTRODUCTION TO THE REPORT

This study weighs possibilities that the Daily Sun (also referred to as the Sun) will survive beyond 2030 only if it embraces mergers and acquisitions, changes in traditional ways of gathering and circulating news, and experiments with publications in local languages, among other business strategies. The discourse is intended for the Chief Executive Officer (CEO), with focus on brief analyses of the company history, its business framework, and past achievements, structural loopholes, and recommendations.

CLIENT BRIEF

As a media organization, the Sun plays the role of a public umpire but is also a business venture which employs suitable and contextual business models for sustainability (Chesbrough and Rosenbloom., 2002). Interestingly, findings from the media in intermediate and developing countries show that the newspaper/broadcast industry is booming whereas facts from developed countries suggest a contrast (Bagdikian., 2000). Although most researchers believe the disparity is an outcome of choices in adopted business models, many other scholars point to the use of multimedia outlets and new media technologies (e-Readers, tablets and smartphones etc.) as distribution channels by internet companies such as Google, Twitter, Blogs, WhatsApp and Facebook that deliver information in formulaic manner. Although developments in these global media platforms have been criticized for the plunge in print advertising income since early 2017, this trend has continued with many previously Daily Sun advertisers switching to other competitive online podiums. From this backdrop, finding ways through which Daily Sun can compete favourably in a declining economy forms the basis of this research (Collins., 2011).

Lack of critical research on workable business models tend to be paying off for traditional media in intermediate and developing economies as earlier asserted. Therefore, this study seeks to identify some of the business models employed by media organizations in India, China and South Africa for further examination and to convince the Sun newspaper CEO that there are still viable business opportunities for Nigeria’s newspaper industry. Particularly, the outer dynamics factors (macro dynamics and competitive/co-competitive dynamics) will serve as the main analytic tools (Tuchman., 1973).

BACKGROUND

Nigeria is one of the world’s most populous countries, with an estimated population of over 170 million and about 250 multi-cultural ethnic groups who speak more than 40 dialects and have diverse religious backgrounds. The 36-state nation operates a three-tier system of government (federalism) with a Federal Capital Territory (FCT) situated in Abuja.

Nigeria’s background is that of a heterogeneous makeup with multiplicity of cultures and interests which presents the media, and particularly Daily Sun, with an uphill task of educating, informing and entertaining the masses in line with its objectives as a business venture: building relationships, sustaining profits, and participating in social and civic activities (Wood., 2006).

According to Udoakah (2012), information has enormous powers, but in spite of the media’s colossal position championed by Daily Sun in Nigeria, the newspaper industry has experienced stunted financial growth. The researcher identified unfavourable governmental policies, poor reading culture, and the abysmally low disposable income of an average Nigerian citizen as the major constraints to sustainable growth. In addition, the global economic recession which manifests in dwindling oil prices and reduced Gross Domestic Product (GDP) forcefully increased the cost of Daily Sun newspaper productions thereby requiring a dynamic business strategy that ensures value creation and sustained profits in a society with about 60% literacy level (Ekeanyanwu., 2015).

The Daily Sun gradually moved from a phase of prosperity to decreasing fortunes in the last five years and is facing a chronic existential crisis that demands new survival strategies against imminent bankruptcy. This economic situation has forced the news outlet to lay off staff and grapple with other measures to remain in competition. Moreover, several newspaper houses around Nigeria and the world have experienced drastic changes in their business operations thanks to new developments in technology and social media which significantly changed the nature of news delivery and consequentially thinned advertising revenues in print media as advertisers seek better visibility and audience for their messages (Weezle., 2010).

With newspaper circulation strength of about half a million in a country inhabited by over 170 million, there is no doubt that Nigeria’s print media is currently in crisis and requires reliable, productive and sustainable business models to compete from a position of strength.

This research aims at providing answers to the following questions:
1. Is value creation important to the newspaper industry?
2. What is the current situation of print media in Nigeria?
3. How will the Daily Sun achieve competitive advantaged?
4. How will the media house sustain profits in both short and long-term?

CLIENT PROFILE

Company History

The Daily Sun is a Nigerian daily print newspaper company incorporated on 29th March, 2001 and headquartered in KiriKiri Industrial Layout, Lagos. It started production, initially as a weekly newspaper, on 18th January, 2003 and by 16th June, commenced operations as a daily publisher. In 2011, the company reported a daily print run of 130,000 copies and around 135,000 on weekends, with a record of 80 percent average sales which crowned it as Nigeria’s highest selling newspaper (Stanford., 2011).

The Daily Sun appears in similar format as the U.K.-based popular Sun newspaper and has a target audience made up of young adults between 18 and 45 years old, spread across the B and C social economic class (op. cit). Readers are treated to fresh reporting perspectives on sports, arts, culture, religion, crime, economy and politics, among others. Though considered as relatively young, the newspaper house has won several awards for disseminating quality information through Facebook, Twitter and its website.

THE COMPANY TODAY

Dr. Orji Uzor Kalu, the ex-governor of Abia State, holds position as Chairman of the publishing house. Mike Awoyinfa was the first Managing Director/Editor-in-Chief until January 2010, when Tony Onyima took over reins of office. In the same year, Dimgba Igwe (former Deputy Editor-in-Chief) was replaced by Femi Adesina but Dimgba and Mike retained positions as members of Daily Sun board of directors. In December 2013, Adesina replaced Onyima as MD/Editor-in-Chief, and in June 2015, Eric Osagie took over from Adesina and has taken gigantic steps to relaunch Sun newspapers Daily, Saturday and Sun publications in line with acceptable international standards.

The Sun newspapers has made a significant impact on the Nigeria’s cultural and political scenes, having maintained a consistent and unshakable commitment to excellent journalism in both local and international spheres, also issuing honorary awards to deserving individuals, groups and organizations in different sectors of the Nigerian economy (Jide., 2018). It has won numerous awards too, one of which include the Pan-African Investigative Journalism Awards, issued by the Forum for African Investigative Reporters (FAIR) in October 2009.

To boost its reputation as Nigeria’s true King of the Tabloids, the Daily Sun in 2005 merged with Soccer Star, one of Nigeria’s widely read sports newspapers.

The Sun newspaper presents its contents in bold, objective, dramatic, and appealing style that makes it “the people’s voice” and consequentially generates returns from stakeholders and the society at large. Its core values are innovation, integrity and leadership. The company has 42 out stations around the country and boasts of solid partnerships with local and multinational enterprises like Globacom, Nestle Nig. Plc, MTN, Union Bank, Coca-Cola, Nigerian Breweries Plc, Diamond Bank etc.

THE BUSINESS AND MARKET ENVIRONMENT

The Sun newspaper is a limited liability company, and as such, is not listed on the Nigerian Stock Exchange (NSE). It is not also required to publish its financial statements in the media. However, Bimbola Oyesola (2016) reported a total of NGN143.1 billion accruing to Nigerian newspapers as advertising income between 2006 and December 2015. Further analysis from the financial statement showed the year 2014 recorded NGN25 billion as the peak earning, with a slight decline of NGN23.7 documented at the end of 2015.

According to a special edition of media facts from MediaReach spanning over a ten-year period (2006 – 2016), Bimbola added, earnings from advertising in Nigeria’s print media stood at NGN4.4b in 2006, NGN4.8b (2007), NGN4.9b (2008), and skyrocketed to NGN15.8b in 2009. Between 2010 and 2014, the ads income leaped from NGN16.5b, fell to NGN 15.4b, slipped further to NGN9b, increased again to NGN18.5b before reaching the highest point, NGN25.8b respectively. The figure plunged by NGN2.1 in 2015, with Lagos and the northern part of Nigeria attracting the highest expenditure on advert placements year after year. Glo, Guaranty Trust Bank and MTN, among Daily Sun’s business partners, occupied the top three list on press advertising in the period under review.


Image 1: Global media advert earnings between 2001-2017 (Source: GroupM)

“Extinction is most unlikely for the print media,” said Phil Myer, a Knight Chair in Journalism, School of Journalism and Mass Communication at the University of North Carolina. In his opinion, the most successful applications of the Internet will be coming from unexpected digital sources in recent years and current trends prove that traditional media organizations are facing risk of closure only because they have shown unwillingness to invest enough in new technology-based business models (PRC., 2006). The loss of revenues from classified advertising and increasing internet media competition poses difficult challenges to the Daily Sun despite its application of effective strategies in content creation, customer engagement and marketing.

The Meta Model

Barriers presented by administrative rednecks, complexity of bureaucracies, and incompetence on the part of managers will likely forestall a company’s adaptation to new business culture or adoption of effective changes in grammar and inner dynamics when factors from outer dynamics have been altered (Beinhocker., 2006). The Daily Sun CEO will be used as the subject of this study to ascertain how administrative barriers impact of the newspaper company’s growth strategies in a dwindling economy, including how its current corporate culture can be transformed to an innovative one (Obijiofor and Green., 2001).

The meta model, as a higher order analytic framework, offers a comprehensive picture of factors with direct impact on an organization’s structure and functioning (Matthews., 2017). This model will be utilised in analysing the current situation of Daily Sun newspaper. See image 2 below:


Image 2: The Meta Model (Source: Matthews Robin)

As Matthews' meta model shows, outer dynamics are divided into two factors: the competitive (co-competitive) dynamics and macro dynamic factors. Explained from a political perspective, the macro dynamics factors refer to effects from the conservative parties' opposition or challenges posed by their followers, including technological factors created by competition from social media giants like Google, Facebook etc.

On the other hand, competitive/co-competitive dynamics factors address issues on the company's customers, particularly readers. These outer dynamics with impact on the Daily Sun's sales margin can as well be summarised with PEST analysis, which evaluates the company's business environment to identify its strength and weakness-inducing factors. View image 3 below:


Image 3: Pest Analysis (Source: Aguilar)

Value based management (2016) opines that the competitors utilize outer dynamic forces, which are pivotal in determining a company's competitive advantage and profitability by influencing prices and investment strategies (Porter., 1985). See Porter’s 5 Forces below for more explanations:

PEST AND SWOT


Image 4: Five Forces Model (Source: Porter M. E.)

Read more on https://meziesblog.com/consultancy-report-to-the-daily-sun-nigeria/

After winning so many collective and individual trophies with Manchester United, Real Madrid and Portugal, Cristiano Ronaldo has said he has nothing to prove.

The Juventus striker is proud of everything he has achieved in football so far. Notwithstanding his eternal rivalry with Lionel Messi, the former Sporting Lisbon ace believes this is the right time to live the good life.

Speaking with reporters at the Globe Soccer Awards event, CR7 said his successful football career is not connected to magic, secrets or miracles. “It’s not a coincidence that I win everywhere I go [making reference to his exploits and Old Trafford and the Santiago Bernabeu].”

He continued, “A champion wins all the time…But without hard work, dedication, and passion for what you do, you can’t achieve anything.”

Looking at the long list of trophies and amazing football records, Ronaldo said the most important part of his career is “always keeping the motivation to get better.”

In his words, “I am always inspired to maintain this high-level performance whether I’m playing, exercising or having a vacation…So, you can see that there’s nothing else to prove…All I need to do now is sit back, relax and enjoy this.”

CR7 acknowledged that he is in the last phase of his trophy-laden career. But the four-time Ballon d’Or winner says he has awe-inspiring retirement plans.

“I learned the importance of improving one’s knowledge a long time ago…So, I always try to acquire training on whatever interests me,” he added.

“Life goes on after football. Although I really wish to win a Champions League, not achieving this dream doesn’t make me a failure.

“When you see that the body does not have the same capacity to respond to what the head orders, you have to know how to deal with that and face it.

“Right now, I am preparing for a new life that will see me perfect my English, and if possible, get movie roles in Hollywood…This means that I have to leave my comfort zone, learn more, and challenge myself in new things.”

Talking about his secret to living a happy life, Ronaldo said people should understand that “there’s time for everything.”

“We really need to find a balance…For me, life isn’t about winning all the time or training and training...The day has 24 hours…Within this period, you can decide when or how to train, relax, and be with people that make you smile such as family members and friends…Loving yourself is the key to living a fulfilling life.

“There’s a lot to learn out there but the most important question is: do you have the motivation and passion to excel?”

Source: https://meziesblog.com/cristiano-ronaldo-expecting-movie-roles-in-hollywood-after-football-career/

A CONSULTANCY REPORT ON HOW TO IMPROVE VOLKSWAGEN’S COMPETITIVE ADVANTAGE AND CREATE SUSTAINABLE GROWTH THROUGH RESPONSIBLE MANAGEMENT AND REDUCED PRICE

 

TABLE OF CONTENT

EXECUTIVE SUMMARY                                                                                  3

SECTION 1  

THE COMPANY REPORT                                                                               4

1.0   Introduction of the Company                                                             4

1.1   Terms of Reference                                                                              7

1.2   SITUATIONAL ANALYSIS                                                                    8

1.3    INADEQUACIES & RISK ASSESSMENT                                           15

1.4    VALUE-BASED INADEQUACIES to be ADDRESSED                     17

1.5   EXTERNAL/internal ENVIRONMENT                                             19

1.5 ANALYSIS Proposal for Value Chain Based Solution to Capture Incremental Value for Actual and Future Shareholders & Stakeholders                                 23

1.6 Impact of these Initiatives on Strategic Positioning and Future Business Sustainability                                                                                              27

1.7 RISK FOR NOT IMPLEMENTING THE PROPOSALS                      28

SECTION 2  

EVIDENCE REVIEW                                                                                    28

2.0 INTRODUCTION TO THE BUSINESS MARKET ENVIRONMENT  28

2.1 THE STRATEGY ROAD MAP METHODOLOGY                                 28

2.2 BENEFITS OF STRATEGY ROADMAP                                                 31

2.3 IMPLEMENTING AND UPDATING THE STRATEGY MAP               32

2.4 LIMITATIONS OF THE STRATEGY ROADMAPS                               32

2.5 THE BALANCED SCORE CARD (BSC) METHODOLOGY                   32

2.6 BSC AS A MANAGEMENT SYSTEM                                                      34

2.7 WHY DO COMPANIES NEED A BSC?                                                   34

2.8 CORE ASPECTS OF THE BSC                                                                 35

2.9 BENEFITS OF THE BSC                                                                           37

2.10 LIMITATIONS OF THE BSC                                                                  37

PART 2 OF 2 CONCEPTUAL FRAMEWORK FOR VALUE CREATION 38

2.11 How the Concepts were Applied to Analyse the Problem             46

2.12 Potential DBA Perspectives for Next Stage                                       47

SECTION 3                                                                                            

3.0 REFLECTION FOR EMPLOYABILITY ENHANCEMENT                       47

REFERENCES                                                                                                   49 

 

EXECUTIVE SUMMARY

The U.S. Environmental Protection Agency (EPA) triggered Volkswagen's emission scandal after alleging that Volkswagen Group of America (VW) flouted operational guidelines under Clean Air Act (CAA) by secretly introducing emission control gadgets in all 2-liter diesel engine models produced between 2009 to 2015. The German automaker admitted to developing and installing “defeat devices” for on-road emissions testing to reduce in-use NOₓ emissions by an average of 4 to 10 ratio above standard set by the EPA. Initial reports said an estimated 500,000 vehicles were affected by the device, but as the global drama unfolded, over 11 million VW brands were recalled for replacement and financial compensations worth billions of dollars (Mays., 2015).

This report is written as an internal consultant for VW’s echelon in consideration of its volatile business environment, and to offer effective leadership solutions that also tackle issues on sales and marketing, development and research as well as affordable consumer-friendly innovations.

This study is presented in three parts. First, a situational assessment of VW’s history, current business performance, productivity level, position against competitors in the markets, and value/profits created for both organization and its shareholders. This section includes a comprehensive discourse on “dieselgate” (Siciliano., 2015) together with assessments conducted using proper modules such as SWOT, PESTEL and 5 Forces Analysis to identify VW’s strengths and weaknesses and make recommendations via workable strategies (Strategy Road Map and BSC) toward achieving sustainable growth and increasing shareholder value. This report will also highlight implications for ignoring the consultant’s proposals.

The second section is an evidence review of reports on VW’s shareholder value creation, including whether applied business strategies have been effective and regularly reviewed for improvement.

In conclusion, the last part presents a self-reflection of the consultant’s competence in module-building and implementation.







SECTION 1
THE COMPANY REPORT
1.1.0        Introduction of the Company

Established by Adolf Hitler and the German Labour Front in 1937 with head office in Wolfsburg, Germany, Volkswagen became a leading automaker through its Golf model before 1980, following a dramatic fall in global car prices, particularly in the U.S. and Canada. Notwithstanding the huge successes, VW faced aggressive price-based strategies from a group of Japanese and American car manufacturers. The volatile business environment necessitated Chairman Carl Hahn’s decision to shut down factories located in Pennsylvania and New Stanton. Development plans were, however, initiated for expansion to developing countries such as China, Mexico, Portugal, Belgium, Malaysia, and Brazil.

Radical changes in VW’s leadership and innovation strategies have been rewarding in the years preceding 2015. Among the company’s numerous awards are a Consumer Reports first-place award for the Top Sporty Car under $25,000, and top 10 from Car and Driver magazine’s selection (2007) for the GTI models. It’s mid-size Passat model, in 2008, also won Automobile Magazine’s Car of the Year and earned another recognition from Motor Trend which ranked it as best in its class. In addition, the Passat model won Our 10 Best Car awards for 12 consecutive years in December 2017, having held position as North America’s Car of the Year 2015 (Annie., 2007; Joe., 2015; Bertel., 2017).

Despite Volkswagen’s landmark achievements, the EPA’s strict emissions regulation compelled it to end its flagship diesel engines in 2009 and roll out new mechanisms that are within American standards but limited to functioning on only 5 percent bio-diesel, a decision taken by the German carmaker to maintain its consumer warranty.

But the 2015 scandal was a major setback on VW’s competitiveness in the global market, where it recorded a decline of 2.7% by April 2016 as its 16th drop within 18 months (Fortune., 2016). The company also experienced slash in sales volume (1.3% or an approximated 1.46 million cars) in the first quarter of that year and demand for VW brand models plummeted by a small margin in Western Europe, South America, and Asia-Pacific. Although 10% decline in sales was recorded for the U.S. market, the company said in its annual report that sales in North America was static while Central and Eastern Europe soared by up to 3.3% (Yahoo Inc., 2015).

An overview of the Volkswagen Group shows the company documented unprecedented global sales by the end of 2016 and retained its position as one of the biggest brands with excellent R&, market-savvy designs, and a team of experienced engineers, marketers, distributors and dealerships. Notably, an external analysis on VW shows the impact of negative publicity which was responsible for stunted growth in 2017. This trend, if left unchecked, can cause more devastating outcomes (Sean., 2015; Fox., 2015; Loana., 2017)

While efforts have been made to identify strategic changes that can transform VW business operations for profitability, including positive tangible and intangible capabilities required to st afloat in the highly competitive industry, this report aims at answering the following questions:

Is value creation an important part of VW’s existence?
What are the benefits of managing viability?
In which ways can VW identify and maximize competitive advantage?
What activities, decisions and culture are required to keep a company in business?

1.1.1 Aim of the Report

Using a mix of business model review and other investigative methods which highlight competitor engagement, this research aims at conducting a thorough analysis of VW’s position in the car-making business to ascertain practicable approaches for competitive advantage, value creation and sustained growth.

1.1.2 Terms of Reference

To conduct a thorough assessment of VW’s current situation using a business model framework.
To determine pitfalls in VW and make recommendations using internal and external analytic models such as SWOT, PESTEL and 5 Forces analysis.
To identify present value-based inadequacies to be addressed over a future-specified time together with a statement of risks to be encountered if no action is taken.
To suggest important changes to the business model with the aim of achieving new routes to value creation and value delivery for financial value capture.
To suggest a value chain-based solution with the capacity to attain incremental value-added results for all existing and potential shareholders as well as key stakeholder groups.
Present a forecast on how the intended tangible outcomes from this strategic initiative will strategically reposition VW and guarantee future business sustainability.

1.1.3 List of Abbreviations

BMW: Bayerische Motoren Werke

BSC: Business Score Card

CSR: Corporate Social Responsibility

EPA: Environmental Protection Agency

HR: Human Resource

VW: Volkswagen or Volkswagen Group of America

Source: https://meziesblog.com/a-consultancy-report-on-volkswagen-group/

The bathroom is a place we can never avoid no matter the level of phobia we have for germs, sickness and diseases.

In fact, some health experts have argued about the pros and cons of cleaning too much, adding that some germs found in the toilet could be harmless. But everyone knows that leaving orange stains on your shower curtains only highlight your insensitivity to living under appalling conditions. Gross! That’s nauseating. And dirtiness should be considered a threat to life because it increases health risks.

What’s your definition of cleanliness?

Cleanliness is next to godliness, they say. This maxim remains indisputable, even to atheists, Muslims, Christians and people from all walks of life, except those who live in a utopian environment where bacteria such as serrati marcescens—which survives only in moist environment—does not exist. And people who knew you as a pretty smug will, suddenly, have a change of heart after seeing those disrespectful stains on your bathroom curtains. Your shower curtains therefore need thorough and regular cleaning to keep—not just your reputation and high health standards—but to safeguard your life and those of your loved ones from bacterial or fungal infections.

What causes orange stains on shower curtains?

Water is life. We need it in our daily lives and can hardly survive days without drinking a glass of water. But, for those orange stains on your shower curtains, water is a curse in disguise because it high mineral and iron content mixed with soap suds gradually provide breeding space for bacteria. And you know quite well that when moisture stays stagnant for days, the bacteria growth tends to darken in colour and—when it comes in contact with your skin—can cause many infectious diseases.

Your personality and hygiene

You know how dirty and repugnant those orange stains look on your shower curtains. And you wish they could disappear on your command, don’t you? Of course, I do, too! Most people have the same feeling towards stubborn stains, especially those on bathroom walls and shower fabric but what differentiates you and them as “hygienic” or “dirty,” “homely” or “unappealing” is the choice you make about your environment, health, clothing etc.

The first time you set eyes on any orange stuff thriving in your shower, your immediate action should be to remove them or risk making everyone in the home susceptible to environmental hazards—which is costlier and dangerous. You would care to learn some cleaning tricks for shower curtains unless your understanding of “health is wealth” and “environmental protection” means protecting the ecology of harmful organisms in your bathroom, one of the few places your beautiful skin gets full exposure to bacteria.

Tips on removing orange stains   

Orange stains on shower curtains are noxious. They are everywhere, from the bathroom walls to your sink, tank and toilet bowl. To totally eliminate growth of this life-threatening bacteria in your bathroom, the following items are important:

Bleach: One of the most effective chemicals for cleaning those yellow lines on your shower curtains is bleach. It will kill them all! Without remedy. Yes. But how, you may ask. Because bleach is a product designed for stubborn stains. Here’s how you can achieve the desired objective.

First, consider buying a chlorine-based cleaner.

Wear rubber gloves. You will need it for swishing the material in water.

Proceed with soaking the fabric in hot water. And make sure the hem goes in first because the bottom always has the worst stains.
Add a few old towels. They won’t hurt your curtains but will rather protect and make them look newer.
Ensure that the water used in soaking the curtains is enough to cover all when immersed.

Wait between 20 – 30 minutes and wash. Viola! You won’t believe the magic of chlorine bleach, which I still consider a safe, non-toxic and cost-effective method of eliminating stains and bad odour from coloured and white bathroom clothing. The process is as easy as ABC, isn’t it? But you’ll never know if you don’t try.

Soak it again to ensure that all stains are totally removed. It works for me after observing this procedure twice before sending it for washing in the machine.

However, you should carefully check the washing instructions on the tag of your shower curtains—if available. Otherwise, if you have concerns for fading colours or skin irritations from using chlorine-based bleach, you may consider swapping bleach for laundry detergents.

Whether washing the curtains by hand or machine, apply caution. A gentle wash will preserve your fabric from wash and tear caused by excessive squashing.

Once you complete the washing, your drying options are to either hang it up in the bathroom or outside, especially on a sunny day. Of course, drying shower curtains in the sun is faster and safer because the shower is usually damp with less ventilation. Importantly, after repeated soaking and sunning, your fabric may not look as crispy and beautiful like the day you bought them but the huge difference will be noticeable.

Protecting your shower curtains from bacteria

As long as your shower in the bathroom, there will be moisture build-up which leads to mildew and yellow stains. Bacteria growth is therefore unavoidable. But you can protect yourself and family members from unnecessary health risks by regularly washing your shower curtains with chlorine-based bleach as explained earlier in this article—maybe once every month. It won’t be a problem if you wash them every two or three weeks, too. That’s how I keep mine clean and safe and my husband never stops appreciating me for giving him and the kids some “habitable and germ-free” bathrooms. He even brags about my homely nature to his friends and family. And the day he introduced me to one of his business partners, saying, ‘…She’s the saintliest woman I’ve ever known…She’s a no bacteria-woman and it’s working for me, my heart, life, business and marriage…In truth, I’ve always dreamt of wrapping myself in the shower curtains and sleeping off in the bathroom.’ His words, though more like a joke, stuck with me and has been an inspiration since that day. You will never know how much your kids, parents, spouse or friends appreciate your little efforts to live a bacteria-free life.

Removing orange stains from your shower curtains is easy. Just give it a try.

Source: https://meziesblog.com/how-to-remove-orange-stains-on-shower-curtains/

Have you ever wondered why people love hoodies so much that they wear it in hot weather? You must have seen it from Winnie The Pooh, right? Maybe, yes. But you didn’t have to notice his clothing because that perpetual depressing countenance was a turnoff.

Most people look adorably beautiful in hoodies that you impulsively feel like giving them hugs.

Admittedly, Winnie looked damn cute in it, too, in a way that makes one want to pamper him a bit. That’s what hoodie lovers get every day of their lives.

Most hoodies are specially made and unarguably cool in appearance, quality and sensation. You will never wear one without getting a couple of compliments on your youthful appearance. They are excellent for sporting activities like jogging and exercising, especially in cold weather conditions. Yoga practitioners, athletes, entrepreneurs and blue-collar workers love them. And hoodies appeal to richly-endowed women and girls who love to hide their goodies.

Source: https://meziesblog.com/why-most-people-love-hoodies/

How about avoiding wardrobe malfunction? Hoodies can help you do just that—because they fit almost anything—especially if you choose the right quality from reputable companies. The clothing is just too cool and casual for most people that they stockpile different colors in their wardrobes, particularly those who express their moods with colors—a reason they say hoodie lovers are suffering “toxic fandom.” But that’s a compliment.

Hoodies appeal to people of all ages. They feel so cool and soft on the skin that you can wear them some layers underneath or nothing at all—and it’ll still look awesome. No one will even notice that. Moreover, most hoodies have an outlandish way of stirring your unconscious love beautiful, comfy and yet affordable clothes.

My latest shopping discovery was made while searching for the best hoodies to gift my fellow hoodie fans. My previous efforts were disappointing, then frustrating and eventually frantic until I stumbled on some perfectly-made designs at one of the best retailers and wholesale merchants with strong online presence and distribution networks. I loved their hoodies stock from the bottom of my heart, and it was more so because I found the color mix and artistic designs to be unique, weird lovely, intimidating, charming and thought-provoking. I still have the imagery in my memory because the hoodies were nothing like I have seen anywhere before.

Hoodies are made from combinations of durable, machine-washable and color-friendly fabrics (Polyester, Lycra, Cotton, and Elastane) that resist abrasion, wrinkles, shrinking and mildew. The colors don’t fade easily and the designs will never peel or crack. There are designs tailored to suit your personality, style and mood, as always desired by smart buyers who understand the real value of comfort and belongingness.

Hoodie designers are brilliantly inventive in their fashion designs and somewhat reflects on your beliefs—like imprints that support human rights, environmental conservation, political ideologies, religious philosophies, sexualities, gender equality, global peace etc. It doesn’t matter if you’ve worn hoodies without purpose. Your love for the fabrics and designs make you our hero. Try one today for a memorable fashion experience.

There's nothing wrong with acquiring a 2013 Ferrari 458 Italia, especially if he didn't embezzle public funds. He is working hard for the money. And that's an exotic ride which most car collectors could splash 10x the market price 6 years ago.

Have you ever wondered why people love hoodies so much that they wear it in hot weather? You must have seen it from Winnie The Pooh, right? Maybe, yes. But you didn’t have to notice his clothing because that perpetual depressing countenance was a turnoff.

Most people look adorably beautiful in hoodies that you impulsively feel like giving them hugs.

Admittedly, Winnie looked damn cute in it, too, in a way that makes one want to pamper him a bit. That’s what hoodie lovers get every day of their lives.

Most hoodies are specially made and unarguably cool in appearance, quality and sensation. You will never wear one without getting a couple of compliments on your youthful appearance. They are excellent for sporting activities like jogging and exercising, especially in cold weather conditions. Yoga practitioners, athletes, entrepreneurs and blue-collar workers love them. And hoodies appeal to richly-endowed women and girls who love to hide their goodies.

Source: https://meziesblog.com/why-most-people-love-hoodies/

How about avoiding wardrobe malfunction? Hoodies can help you do just that—because they fit almost anything—especially if you choose the right quality from reputable companies. The clothing is just too cool and casual for most people that they stockpile different colors in their wardrobes, particularly those who express their moods with colors—a reason they say hoodie lovers are suffering “toxic fandom.” But that’s a compliment.

Hoodies appeal to people of all ages. They feel so cool and soft on the skin that you can wear them some layers underneath or nothing at all—and it’ll still look awesome. No one will even notice that. Moreover, most hoodies have an outlandish way of stirring your unconscious love beautiful, comfy and yet affordable clothes.

My latest shopping discovery was made while searching for the best hoodies to gift my fellow hoodie fans. My previous efforts were disappointing, then frustrating and eventually frantic until I stumbled on some perfectly-made designs at one of the best retailers and wholesale merchants with strong online presence and distribution networks. I loved their hoodies stock from the bottom of my heart, and it was more so because I found the color mix and artistic designs to be unique, weird lovely, intimidating, charming and thought-provoking. I still have the imagery in my memory because the hoodies were nothing like I have seen anywhere before.

Hoodies are made from combinations of durable, machine-washable and color-friendly fabrics (Polyester, Lycra, Cotton, and Elastane) that resist abrasion, wrinkles, shrinking and mildew. The colors don’t fade easily and the designs will never peel or crack. There are designs tailored to suit your personality, style and mood, as always desired by smart buyers who understand the real value of comfort and belongingness.

Hoodie designers are brilliantly inventive in their fashion designs and somewhat reflects on your beliefs—like imprints that support human rights, environmental conservation, political ideologies, religious philosophies, sexualities, gender equality, global peace etc. It doesn’t matter if you’ve worn hoodies without purpose. Your love for the fabrics and designs make you our hero. Try one today for a memorable fashion experience.

‘He makes everything work out according to his plan.’ Ephesians 1:11 NLT

The Bible says, ‘The Lord will withhold no good thing from those who do what is right’ (Psalm 84:11 NLT).

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Sometimes we pray for a certain thing, believing it’s good for us. But God, who has a plan for your life, knows what would be ‘good’ and what wouldn’t be.

Billy Graham’s wife, Ruth, said if God had answered all her prayers when she was young, she’d have married the wrong man – several times.

Two teardrops were floating down the river of life. One asked the other, ‘Who are you?’ The second replied, ‘I’m the teardrop from the girl who loved a man and lost him. Who are you?’ The first teardrop replied, ‘I am the teardrop from the girl who got him.’ That’s the way life goes, isn’t it?

We cry over what we don’t have, not realizing we might have cried twice as hard if God had given it to us.

The expression ‘walking by faith’ means trusting the plan God has already worked out, and will reveal to you on a need-to-know basis.

Paul said, ‘I have learned in whatever state I am, to be content’ (Philippians 4:11 NKJV). Clearly his contentment didn’t come from his surroundings, since he spent all but seven years of his ministry in prison. So where did it come from? The knowledge that God ‘makes everything work out according to his plan’ (Ephesians 1:11 NLT).

Does that mean Paul understood every detail of God’s plan? No, but when he didn’t understand the plan, he trusted ‘The Planner’! And that’s where Paul’s peace, joy, and contentment came from. The same goes for you.

Soulfood: Col 1-2, Mark 11:1-11, Ps 78:9-16, Prov 23:22-25

Source: https://meziesblog.com/why-you-should-trust-god-with-your-life/