Page 12 - CIMA MCS Workbook May 2019 - Day 2 Suggested Solutions

CIMA MAY 2019 – MANAGEMENT CASE STUDY

is added. In addition JORD does not currently have on‐line sales which maybe an appropriate
alternative.

Service ‐ would involve dealing with all after‐sales activities. In our case we would be dealing with
the client in terms of damages and/or shortages and any corrective action taken. This is a
sensitive area and one traditionally associated with differentiators like JORD. The customer will
expect quality however and that will apply to the product throughout the whole process,
particularly given the involvement and transparency we are offering our customers.

Support Activities, for JORD these are critical activities, contribute directly to the success of the
business and are inextricably linked to delivering value.

Procurement – for example, purchasing involving the negotiation of the best deals from our
suppliers. This is a key activity for JORD to ensure quality of the raw materials and compliance
with our environmental policies for example. In addition supplier flexibility re delivery is crucial to
fit into the JIT system

HRM – all matters relating to staff from recruitment through to dismissal. This is particularly
relevant for JORD, given the growth in the number of staff (now 250). It will always be necessary
to employ on‐site, non Jord workers, e.g. teams of expert builders, tradespeople and landscapers
to comply with the nature of our business model. As the industry is subject to change, JORD relies
upon the highest quality of staff to deliver the luxury product and service to the customer. JORD
may need to consider hiring additional professionals in this sensitive area to deal with issues that
may arise with key stakeholders such as trade unions.

Technology development – essentially how we at JORD will use technology. This is an area upon
which JORD will be increasingly reliant for future success with the changes in the external
environment creating almost a constant need for updates to efficiency, sourcing of new materials
etc. The introduction of BIM, as previously noted, is a possibility and JORD needs to be careful
that they have the right skills in place should they decide to pursue this strategy. This may again
be a reason to consider employing additional HR professionals.

Infrastructure – deals with how we at JORD are organised to include structure, culture, finance
and the policies and processes that JORD has in place. This is an area that will need some
additional work based on the current reliance on the Larsson family to own and lead the business
forward.

Application of the value chain:

Our basic approach should be to work through the elements of the value chain, as identified by
the model and consider which of the activities JORD undertakes contribute towards our clients’
experience. The starting point would therefore be to understand what each link in the value chain
contributes, if anything, to the creation of added value.

It will be important to develop “linkages” in the value chain to determine how/if value is being
added. For example, between the primary and support activities if Technology Development
ensures that the most up to date design processes are available for clients. Procurement can then
ensure that we purchase the correct quantities at the right price and quality, further enhancing
our “just in time” system.

96 KAPLAN PUBLISHING