Page 15 - CIMA MCS Workbook November 2018 - Day 2 Tasks

Chapter 9

PROJECT AND RELATIONSHIP

MANAGEMENT (E2) PRACTICE TASKS

TASK 1 – Internal analysis
Trigger

From: CEO
To: Finance Director
Date: Today
Subject: Internal analysis

I recently attended a meeting at a recent CEO Forum for the soft drinks industry. I note below an
extract from presentation at that forum on the future of the industry:

“The industry as a whole faces challenges as a result of the slumping economy and changes in
consumers’ consumption patterns due to increased health consciousness. Marketing is an
important component of the industry value chain, used to generate demand and build consumer
loyalty. It has undergone a number of changes over the last five years due to efforts to reduce
advertising directed at children, to introduce new types of media, and to update marketing
messages for consumers who are looking for more healthful alternatives. Growing competition
among the industry players is encouraging new solutions in this arena to which established
companies must adapt ‐ companies must learn to operate more efficiently. The vision for the soft
drinks manufacturers of the future public transport players of the future is a significant decrease in
operating costs and improvement in customer satisfaction. This vision is likely to force industry
players to redefine what they are particularly good at, what their most distinctive capabilities are,
where they have the appropriate scale to compete and where they fit into the industry’s overall
value chain”.

I was particularly interested in this session on how important it is to understand what we are
“good at”. There were some interesting ideas about the use of the value chain (see attached
diagram) to establish which of an organisation’s internal activities are consistent with distinctive
capabilities. A greater understanding of this will no doubt help us to control costs and comply with
the overall strategy of delivering excellent and unique customer experience at a competitive rate
– i.e. providing value for money.

The financial statements for 2018 indicate that whilst we are profitable we need to be sure that
costs remain under control, especially in periods of growth. I think it is time for us to look closely
at what we do in more detail.

I would like you prepare a briefing note on this for circulation prior to the next board meeting.
Thanks in advance
Roger

KAPLAN PUBLISHING 35