Assignment 1
1. Name a company, and vision and mission
Company: Tesla, Inc.
Vision: To accelerate the world's transi on to sustainable energy.
Mission: Tesla's mission is to create the most compelling car company of the 21st
century by driving the world's transi on to electric vehicles. Through relentless
innova on and the development of high-performance electric vehicles, Tesla aims to
make sustainable transporta on accessible and desirable for everyone, ul mately
reducing carbon emissions and comba ng climate change. Addi onally, Tesla seeks to
expand its reach beyond cars, integra ng renewable energy solu ons like solar and
storage to create a comprehensive ecosystem for sustainable living.
2. Name of five companies and how are they be er from other compe ve companies.
Certainly!
1. Apple Inc. dis nguishes itself through seamless integra on of hardware, so ware,
and services, coupled with design excellence and relentless innova on, se ng standards
in user experience and product quality within the tech industry.
2. Google (Alphabet Inc.) stands out for its unparalleled informa on accessibility, AI-
driven services, and diverse product por olio, offering users personalized solu ons and
efficient access to knowledge across various pla orms.
3. [Link], Inc. leads in e-commerce and cloud compu ng due to its customer-
centric approach, robust logis cs infrastructure, and con nuous innova on, providing
unparalleled convenience, reliability, and diversifica on in services.
4. Tesla, Inc. dominates the electric vehicle market with its focus on innova on,
autonomy, and energy integra on, revolu onizing transporta on and sustainability
while pushing boundaries in automo ve technology.
5. Ne lix, Inc. leads the entertainment industry with original content, personalized
recommenda ons, and seamless streaming technology, redefining how audiences
consume media and se ng new standards in content delivery and user experience.
1. five examples of Indian brands for each of the specified business strategies:
1. Low Cost:
- Patanjali Ayurveda: Offers a wide range of products, including Ayurvedic medicines,
personal care, and food items, at compe ve prices, targe ng value-conscious
consumers.
- Micromax: Known for its affordable smartphones and consumer electronics,
catering to budget-conscious buyers in the Indian market.
- Big Bazaar: Operates as a hypermarket chain offering a diverse range of products at
discounted prices, making it popular among price-sensi ve shoppers.
- SpiceJet: A low-cost airline that provides budget-friendly air travel op ons to
domes c and interna onal des na ons in India.
- Parle Products: Produces a variety of biscuits, snacks, and confec onery items at
affordable prices, catering to mass-market consumers.
2. Best Cost:
- Titan Company: Offers a wide range of premium watches, jewelry, eyewear, and
accessories, striking a balance between quality and affordability.
- Maru Suzuki: Known for producing reliable and fuel-efficient cars at compe ve
prices, appealing to cost-conscious car buyers in India.
- Havells: Provides high-quality electrical appliances and consumer electronics at
rela vely affordable prices, ensuring value for money.
- Tanishq: Offers premium jewelry collec ons with superior cra smanship and design
aesthe cs, targe ng discerning customers who seek both quality and value.
- Blue Star: Manufactures and markets a range of cooling and refrigera on products
known for their quality and energy efficiency, catering to both residen al and
commercial customers.
3. Broad Differen a on:
- Amul: Known for its extensive range of dairy products, including milk, bu er, cheese,
and ice cream, with a strong emphasis on quality and taste.
- ITC Limited: Diversified conglomerate offering a wide range of products and
services, including FMCG, hospitality, agribusiness, and informa on technology.
- Tata Motors: Produces a diverse por olio of vehicles, including passenger cars,
commercial vehicles, and electric vehicles, catering to various segments of the
automo ve market.
- Asian Paints: Offers a wide range of paints and coa ngs for interior and exterior
applica ons, known for quality, durability, and innova on.
- Bajaj Auto: Manufactures motorcycles, scooters, and three-wheelers with a focus on
performance, style, and affordability, catering to diverse customer preferences.
4. Focused Differen a on:
- Royal Enfield: Specializes in manufacturing classic motorcycles with retro styling and
a dis nct brand iden ty, targe ng enthusiasts of vintage bikes.
- FabIndia: Focuses on ethically sourced and handcra ed Indian tex les, garments,
furnishings, and personal care products, promo ng tradi onal cra smanship.
- Forest Essen als: Offers a range of luxury skincare, haircare, and wellness products
made from Ayurvedic herbs and natural ingredients, targe ng premium customers
seeking holis c beauty solu ons.
- Sabyasachi Mukherjee: Renowned fashion designer specializing in couture bridal
wear and ethnic Indian clothing, catering to discerning customers looking for luxury and
exclusivity.
- MTR Foods: Specializes in ready-to-eat and instant food products inspired by
authen c Indian cuisine, targe ng consumers seeking convenient yet tradi onal meal
solu ons.
5. Focused Low Cost:
- IndiGo Airlines: Known for its no-frills approach to air travel, offering low-cost flights
with efficient opera ons and a simplified booking process.
- D-Mart: Operates as a chain of hypermarkets offering a limited range of essen al
products at discounted prices, focusing on cost efficiency and value for money.
- Zomato: Online food delivery pla orm that provides affordable dining op ons from
a wide range of restaurants, leveraging technology for efficient delivery services.
- RedBus: Offers online bus cket booking services, focusing on providing affordable
and convenient travel op ons for bus passengers across India.
- PharmEasy: Online pharmacy and healthcare pla orm that offers medicines,
wellness products, and health services at discounted rates, catering to cost-conscious
consumers seeking healthcare solu ons.
Supply Chain Strategy and
Innovation
Evolution of Supply Chain Management
Activity fragmentation to 1960 Activity Integration 1960 to 2000 2000+
Demand forecasting
Purchasing
Requirements planning
Purchasing/
Production planning Materials
Management
Manufacturing inventory
Warehousing
Logistics
Material handling
Packaging
Finished goods inventory Supply Chain
Physical Supply Chain
Management
Distribution Management
Distribution planning
Order processing
Transportation
Customer service
Strategic planning
Information services
Marketing/sales
Finance
CR (2004) Prentice Hall, Inc.
Supply Chain Schematic
Traditional Scope of the Supply Chain
Business logistics
Physical supply Physical distribution
(Materials management)
Sources of Plants/
Customers
supply operations
• Transportation • Transportation
• Inventory maintenance • Inventory maintenance
• Order processing • Order processing
• Acquisition • Product scheduling
• Protective packaging • Protective packaging
• Warehousing • Warehousing
• Materials handling • Materials handling
• Information maintenance • Information maintenance
Internal supply chain
Supply Chain is Multi-Enterprise
Conventional
Focus Scope
Company
Suppliers Customers
Supplier’s Customers/
suppliers End users
Acquire Convert Distribute
Product and information flow
Strategic, Tactical, and Operational Decision
Making
Decision area Strategic Tactical Operational
Transportation Mode selection Seasonal equip- Dispatching
ment leasing
Inventories Location, Control policies Safety stock levels Order filling
Order Order entry, transmittal, Processing
processing and processing system orders, Filling
design back orders
Purchasing Development of supplier- Contracting, Expediting
buyer relations Forward buying
Warehousing Handling equipment Space utilization Order picking
selection, Layout design and restocking
Facility Number, size, and
location location of warehouses
Strategic planning: Introduction
• Strategy, originally a military term, is how generals
marshal all available resources in pursuit of victory.
• Strategic planning is the process of developing a
strategic plan, sounds considerably more sophisticated
and powerful than plain old planning.
• It describes “how to marshal and determine actions to
support the mission, goals, and objectives of an
organization”.
• It generally includes an organization’s explicit mission,
goals, and objectives and the specific actions needed to
achieve those goals and objectives.
Strategic planning: Introduction
• Direction of an organization is predicated on its
business strategy (mission and vision
statements).
• Business strategy is a plan for choosing how to
compete.
• Business Strategy Ex. least cost, differentiation,
and focus.
Strategic planning: Introduction
Organizational strategy is to identify
• “how the company will function in its
environment. Specifies how to satisfy
customers,
• how to grow the business, how to compete
in its environment,
• how to manage the organization and
develop capabilities within the business,
and
• how to achieve financial objectives.
Strategic planning: Introduction
• A business model is the organization’s business
and organizational strategy formalized into a
business plan.
• Supply chain strategy is then a strategy for how
the supply chain will function in its environment to
meet the goals of the organization’s business and
organizational strategies.
Inputs to supply chain strategy:
Internal Inputs
Business strategy
• Low cost—Focuses on delivering no-frills basics with
low prices that are hard to match; cost is the basis
for competition.
• Best cost—Focuses on delivering the best value at a
relatively low price; both cost and quality are the
bases for competition.
• Broad differentiation—Creates product/service
attributes that appeal to many buyers looking for
variety of goods; customer experience and/or quality
are often the basis for competitive differentiation.
Inputs to supply chain strategy:
Internal Inputs
Business strategy
• Focused differentiation—Develops unique strategies
for targeted niche markets to meet unique buyer
needs; niche marketing and innovation are important
examples of this type of competitive basis.
• Focused low cost—Designed to meet well-defined
(niche market) buyer needs at a low cost;
responsiveness can be the basis for competition.
Inputs to supply chain strategy:
Internal Inputs
Organizational strategy
• Strategy: customer focus and alignment
• Strategy: forecast-driven enterprise
• Strategy: demand-driven enterprise
• Strategy: product-type-driven
Inputs to supply chain strategy:
Internal Inputs
Business plan
• The business plan provides general direction
regarding how the company plans on achieving
its long-term objectives.
• Key functions include finance, engineering,
marketing, and operations.
Inputs to supply chain strategy:
Internal Inputs
Value proposition
• The organization’s value proposition is the set of
activities that the organization will use to
actualize strategy
Inputs to supply chain strategy:
Internal Inputs
Set of core capabilities
• Economy of scale
• Geographic expertise or capacity advantages take the
form of regional networking, business associations,
language and culture expertise, or regional economies
of scale.
• Technology advantages include proprietary technologies
that would be cost-prohibitive to develop or license.
• Resource advantages include currently available
expertise or materials or financing that would take time
and effort to develop.
Inputs to supply chain strategy:
Internal Inputs
Cost structure
• Make-to-stock has low production costs but high
inventory carrying costs. This model is best for
standardized, high-volume products.
• Assemble-to-order (modules are made to stock but
the final customer order is assembled only after
being ordered) has moderate production costs and
low inventory carrying and planning costs. This
model is for moderate- to high-demand items with
many options, such as computers.
Inputs to supply chain strategy:
Internal Inputs
Cost structure
• Make-to-order has high production costs but low inventory
carrying costs and low planning costs. This model is for items
that come in a wide variety of configurations or options.
• Configure-to-order (mass-producing items that can be
configured after being ordered) is a short lead time extension
of make-to-order that has moderate production and inventory
carrying costs. It is used when it would take longer to
assemble the item than the customer is willing to wait.
Delivery times can be reduced and customer experiences
tailored.
• Engineer-to-order (e.g., construction of a building) has
production and inventory costs that can be initiated after
payment is agreed upon.
Inputs to supply chain strategy:
Internal Inputs
Revenue model
• A revenue model is the organization’s plan for
how it will earn more revenue than its
expenses and thus earn a profit.
• A revenue model considers the sales
channels that the organization will employ to
sell the good or service.
• Channels can be direct or indirect, that is,
from a dedicated sales force or web page or
through intermediaries such as distributors or
retailers.
Inputs to supply chain strategy:
External Inputs
• the environment external to a business including
technological, economic, natural, and regulatory
forces that marketing efforts cannot control
• An environmental scan is needed to complete the
inputs to supply chain strategy.
• develop a supply chain strategy that is flexible
enough to adopt new strategies quickly as
demanded by the situation.
Example: Liquor Companies, ITC
Inputs to supply chain strategy:
External Inputs
Competition
• Offerings and Price, Market share in each region
• Any customer requirements that are going
unsatisfied. Watsapp (SIGNAL)
• Getting a foothold in areas where the competition
already has established strong market share
requires a well-thought-out strategy. Reliance in
Retail, Walmart in India
• SWOT analysis, Benchmarking
Inputs to supply chain strategy:
External Inputs
Market Conditions
• the state of the global, local, and industry economy
• the impact of recent events or disasters,
• Present relative market share
• challenging when the organization needs to break
into a market dominated by other competitors or
prospective customers are less likely to make a
purchase due to economic condition
• Information- from government or third-party
reports, economic surveys, or white papers
• satisfy customer requirements more completely or
at less cost than its rivals or buy rivals Ex. Reliance
Inputs to supply chain strategy:
External Inputs
Global Perspective
• Global expansion
• Increased project complexity and scope
• Greater market
• Need the flexibility to withstand global disruptions.
Ex. Airtel