Page 11 - MCS August Day 2 Suggested Solutions

SUGGESTED SOLUTIONS

Operations – activities that change inputs into outputs that are sold to customers. For Montel this
would be the conversion of the lens (grinding and polishing), the addition of coatings and the
fitting of the lens into the camera body.

Outbound logistics – activities in the delivery of products to customers. For Montel this will be e.g.
collection, storage, and distribution systems to the retail outlets. In the case of Montel customers
will generally collect their products from the retail outlet and/or have the products delivered to
their home (website purchase) by post.

Marketing and sales – activities which inform buyers about products, induce buyers to purchase
them, and facilitate their purchase. For Montel the marketing activities are co‐ordinated by the
central marketing department. The sales activity will include time with the retail assistant before
the customer initially selects their camera.

Service – includes all the activities required to keep the product working effectively for the buyer
after it is sold and collected. This will entail time spent with the retail assistants, and ultimately
the store manager should the product not be to the customer satisfaction.

Support activities:

Procurement ‐ the acquisition of inputs, or resources, including negotiation with suppliers e.g. for
Montel the purchase of uncut lenses. We have good relationships with our existing suppliers but
need to be cautious with any new supplier relationships for future strategic initiatives as we will
be reliant on their expertise.

Technology development ‐ the equipment, software, procedures and technical knowledge in our
transformation of inputs into outputs. For Montel, the camera equipment in production,
technology in the retail outlets, technical knowledge of the sales assistant and RND department.

HRM ‐ all matters relating to staff, including recruitment, performance management, training and
development. This will be a key area for Montel if we diversify into areas where we have little or
no experience

Firm infrastructure ‐ consists of functions or departments such as accounting, finance, planning,
marketing, treasury etc. For Montel most of these are based at head office although quality
assurance is paramount throughout all our processes.

How do these activities add value to Montel and maintain competitive advantage?

From an Inbound Logistics perspective the relationship with the glass supplier laboratory is
critical. Perfectly accurate information must be provided from production and feedback from
users to ensure that the laboratory produces the correct lenses to fit the frame selected.

Operations will also be critical to adding value given that Montel’s primary product is the
production and sale of quality cameras.

The effective management of outbound logistics will be critical for Montel given the reputation
that we currently have for service quality. If Montel decide to expand more into other sales

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