EM4053 Operational Effectiveness

Strategic Decision Analysis

2020/21

Student Name: Sam Smith

Student SUN: 200947371
Date: 11th April 2021
 ASSIGNMENT EM4053- STRATEGIC DECISION ANALYSIS

Astra Computers Case Study

The purpose of this assignment is to consider the operational effectiveness factors outlined
in the EM4053 course and how they might impact strategic decision making in an industrial
environment. An exemplar case study was outlined, requiring a series of related decisions to
be made over several weeks. A limited amount of contextual information was presented for
each week's scenario, and a decision related to topics from the course was to be made based
on an evaluation of risks and benefits. A choice needed to be made from a defined selection
of options.

Astra Background Information

Astra is a medium-sized manufacturer of personal computers, with an annual turnover
of ~£3Bn. In recent years, it has concentrated on manufacturing a range of business
laptops as its core product. Sales have been softening and profits are down for the
sixth quarter in a row.
The personal PC market is becoming increasingly competitive, and Astra is considering
options to improve its operational effectiveness. To enable this, a series of key
decisions need to be taken by the board, under guidance recommendations from the
Operations Director (You).

Weekly Decision Rounds

A justification for the scenario chosen for each decision round is required. This should
include the rationale for the decision made, the strategic objectives that were being
sought and any consideration of relevant risks and rewards used in the choice evaluation.

Final Strategic Analysis

Considering the completed decision process and reflecting critically on the outcomes, and
evaluation of the overall strategic objectives and performance is required. This should
include a reflection on the process –

 What have you learnt from the process and how the topics covered in EM4053
affect strategic decision making? e.g. which of the topics areas played a major role
in the performance outcomes.
 How would you change the way you made decisions to improve effectiveness? e.g.
with the benefit of hindsight, would you take a different approach to decision
making.
 How might a more holistic view of operational effectiveness benefit strategic
decision making? e.g. how might you trade-off the topic areas to get a balanced
delivery of objectives.

Page 2 of 20
 ASSIGNMENT EM4053- STRATEGIC DECISION ANALYSIS

Topic T2: Strategic Decision Topic

 Why did you make your scenario choice?
 What were your strategic objectives?
 What were the potential risks and rewards of your decision?

Scenario Selected: A☐ B☒ C☐ D☐
The rationale for scenario selection and evaluation of decision choice (200-300 words):

Assumptions based on Realistic Industry/SWOT analysis

Table A: Astra’s Internal &External Environment Analysis (G)- Given: (A)- Assumed based on
analysis or implicit.

T2: Astra’s Overarching Strategic Objectives- From Operational

Directors (OD) viewpoint.
SO1. To increase the profits/revenue, which otherwise is on a downward trajectory.
SO2. To Develop Sustained Competitive Advantage.

Page 3 of 20
 ASSIGNMENT EM4053- STRATEGIC DECISION ANALYSIS

Scenario’s analysis and Decision Rationale:

Choice Made: Product Diversification
The choices were evaluated on the relative scale as mentioned in Table B, wherein "X+”
indicates more than what is required in scenario A and “X–” indicates less than what is
required in Scenario A.

Table B: Strategy Decision Analysis

Product Diversification reduces the risk, attain a higher market share and make firms more
profitable. (Chiang, 2010). Diversification is an excellent strategy to be pursued when a firm
faces competition in the market.( Ghemawat, 2002; Chen Yongfu, 2017). The resource-based
view suggests that firms can be successful when diversifying to an unrelated industry where
resource flexibility (tangibles resources or intangible resources) can be utilised, making it
appear like a related diversification.(Chatterjee and Wernerfelt, 1991).
Astra will pursue a Strategically Integrated combination of Low cost and product
differentiation strategy based on its unique positioning as an OEM manufacturer with display
technology. Scenario B is the most favourable scenario as per analysis from Table B.

Rewards:
With the PC industry in a decline stage, it is still prudent to pursue the Laptop strategy, as
laptops still derive the most considerable revenue (Gonzales, 2020) and Astra have a high-
end computing capability they can differentiate the product offering.
At the same time, it is proposed to enter the growing Phone/Tablet market to offset the
revenue and profit declines by utilising their core competencies for screen technology, which
forms a high cost and a key component in the phone/tablets.(Sacconaghi Jr et al., 2011). The
display will provide them with a cost advantage over others.

Risks:
Potential risk includes a low barrier to entry in the phone/tablet sector (Cai, 2021), which will
require Astra to be innovative in product offerings and low cost at the same time. The Brand

Page 4 of 20
 ASSIGNMENT EM4053- STRATEGIC DECISION ANALYSIS

will attract the consumer, so maintaining and enhancing brand visibility will be required.

Topic T3 & T4: Capacity & Infrastructure

 Why did you make your scenario choice?
 What were your strategic objectives?
 What were the potential risks and rewards of your decision?

Scenario Selected: 1☐ 2☐ 3☒ 4☐ 5☐
The rationale for scenario selection and evaluation of decision choice (200-300 words):

T3 & T4: Objectives from OD viewpoint.

a. Outsourcing for cost reduction (Aligned with SO1)
b. Develop capacity to Penetrate the Phone and Tablet industry leveraging Display
Technology & Screen production. (Aligned with SO2)

Scenario’s analysis and Decision Rationale:

Choice Made: Utilization-High/Production-Buy/Capacity-More

Utilisation (High)
Cost reduction pressure in the PC industry warrants high utilisation and per-unit cost
reduction by utilising economies of scales (Kuo, Lim and Sonko, 2018). In the display sector
also, profitability is driven by capacity utilisation ('Asian IT Hardware: Running Faster Just to
Stay in Place,' 2011). So, utilisation will be kept high for cost optimisation.

Production (Buy).

Figure 1: Outsourcing Snapshot .('Asian IT Hardware: Running Faster Just to Stay in Place,'
2011)

The PC manufacturing industry production and outsourcing snapshot is provided in Figure 1.

The key drivers of outsourcing are Firm capabilities as strategic assets, External competition
and product characteristics.(Lankford and Parsa, 1999). Products with Modular design,

Page 5 of 20
 ASSIGNMENT EM4053- STRATEGIC DECISION ANALYSIS

governed by widely adapted design and engineering standards like PC, can be easy to
outsource compared with ('Asian IT Hardware: Running Faster Just to Stay in Place,' 2011).
Thus, it makes sense to outsource the notebook and PC business and focus on developing the
phones and Tablets in-house initially. This decision is subject to change in the future.

Capacity (More)
The resource-based view suggests sharing production process, customer assets, channel
assets, input assets, market knowledge assets will lead to developing more capacity in the
long run for Phone/Tablets. (Markides and Williamson, 1996). Capacity referred herein is
assumed to be both in design and manufacturing combined. Thus, the Capacity of Screens
and Phones/Tablets is proposed to increase as they are less modular, and Astra have screen
technology that can be deployed in production in Phone/Tablet which can provide cost
advantage.

Risk:
The decision is based upon the assumption that the Phone and Tablet industry will grow, and
capacity building would provide the responsiveness required to cater for the demand as it
arrives. However, this poses a risk of high fixed cost, leading to lesser profits if underutilised.
Thus, demand estimation is a critical activity.

Rewards:
Keeping utilisation high, growth in capacity & outsourcing for the PC market will lead to profit
maximisation and higher revenue generation. It reduces the companies cost and increases
flexibility to cater to market needs.

Topic T5 & T6: Lean Strategy & Quality

 Why did you make your scenario choice?
 What were your strategic objectives?
 What were the potential risks and rewards of your decision?

Scenario Selected: A☐ B☒ C☐ D☐ E☐

The rationale for scenario selection and evaluation of decision choice (200-300 words):

T5 & T6: Objectives from OD viewpoint

a. Minimise the cost. (Aligned with SO1)
b. Lead time reduction. (Aligned with SO2)
c. Reduce impact on profits. (Aligned with SO1)

Scenario’s analysis and Decision Rationale:

Choice Made: Lean / No ISO /No Six Sigma
Lean implementation is the least in time and cost as compared to ISO and Six Sigma.(Erel and
Ghosh, 1997; Antony, 2011; Greycampus, 2021; Pickrell, Lyons and Shaver, 2005). Lean
Manufacturing focus on inter-process reduction of inefficiencies, whereas, the Six Sigma focus
on variations in intra-process (Bendell, 2006; Dahlgaard-Park et al., 2006). The primary

Page 6 of 20
 ASSIGNMENT EM4053- STRATEGIC DECISION ANALYSIS

outcome for lean is Lead Time Reduction and Cost Reduction, whereas, for Six Sigma, quality
and variability improve customer experience (Dahlgaard-Park et al., 2006; Antony, 2011). ISO
is usually adopted due to market pressure or any specific customer requirement.(Bendell,
2006).
Further, there are commonalities in all three initiatives: they focus on customer satisfaction,
process improvements and largely contribute to operational effectiveness. Only one of three
is implemented simultaneously, and as such, not all three initiatives are pursued by any
organisation (Antony, 2011). Thus, pursuing anyone at a time will be a logical and rational
choice that depends on the problem to be addressed, such as chronic waste elimination,
variation problems, or market pressure.(Bendell, 2006). Table C below summarises the key
point from the available literature.

Table C: Analysis Summary-Lean & Quality

As the case explicitly does not have any reference to quality problems, there are no perceived
quality issues, so pursuing Six Sigma is not logical as it will be costly and resource consuming.
Also, there is no market pressure to go for ISO; it does not justify incurring additional cost on
ISO implementation. Thus, Astra will pursue Lean alone.

Risk:
No significant risk is perceived over this decision as they are not as significant and can be
pursued if need be soon without significant cost time impact.

Rewards:
The Lean will make Astra move towards overall all low-cost strategy and thus aligned with
overall firm objectives. The Lean strategy also focuses on the customer and the creation of a
low-cost value stream and waste reduction.

Page 7 of 20
 ASSIGNMENT EM4053- STRATEGIC DECISION ANALYSIS

Topic T7 & T8: People aspect, Risk & Resilience Plan

 Why did you make your scenario choice?
 What were your strategic objectives?
 What were the potential risks and rewards of your decision?

Scenario Selected: 1☐ 2☒ 3☐ 4☐

The rationale for scenario selection and evaluation of decision choice (200-300 words):

T7&T8: Objectives from OD viewpoint

a. Low-cost structure with empowerment. (Aligned with SO1)
b. Speed to market & Timings. (Aligned with SO2)

Scenario’s analysis and Decision Rationale:

Choice Made: Functional/Responsive
Astra's require “speed to market” as the product life cycle is relatively small with low
switching cost. Additionally, if they can reach the market at the start of the product life cycle,
they can have high margins. Speed to market is a must if they need to sustain R&D and stay
competitive. Also, high volumes are required so that the R&D cost can amortise on large units
produced.(Dedrick, Kraemer and Draemer, 1998). Technology innovation is also required to
bring in newer versions of the product. Thus, speed to market and timing becomes a critical
factor for sustained competitive advantage. They need to collaborate with raw material
suppliers on marketing, design and R&D. Functional structure creates a centre of excellence
through centralisation (Bernstein and Nohria, 1991). Thus, Astra will pursue a Functional
Structure.
Resilience leads to poor cost management (G); considering present downtrends in profits and
revenue, Astra will pursue the responsiveness strategy. Pursuing responsiveness is aligned
with the overall cost differentiation strategy.

Risk:
Functional structure leads to poor time efficiencies, responsiveness and adaptability as per
Table D (Bernstein and Nohria, 1991). Astra is pursuing LEAN implementation in the previous
round and a responsive strategy in the current round to mitigate it. The LEAN implementation
also provides overall flexibility and overcome identified risks.

Page 8 of 20
 ASSIGNMENT EM4053- STRATEGIC DECISION ANALYSIS

Table D: Relative Advantage and disadvantage of various organisation structure (Bernstein

and Nohria, 1991)

Rewards
Astra can be pursuing Low cost and innovation-based differentiation strategy at the same
time. Organisation culture for Continuous Improvement and innovation will create sustained
competitive advantage. Functional structure creates a Centre of Excellence required for
innovations.

Topic T9 & T1: Continuous Improvement & Metrics Selection

 Why did you make your scenario choice?
 What were your strategic objectives?
 What were the potential risks and rewards of your decision?

Scenario Selected: A☐ B☒ C☐ D☐

The rationale for scenario selection and evaluation of decision choice (200-300 words):

T9 &T1: Objectives from OD viewpoint

 Develop a sustainable culture for change and innovation. (Aligned with SO2)
 Focus on business as a whole and establish functional KPI Linked to product
performance. (Aligned with SO1)

Scenario’s analysis and Decision Rationale:

Choice Made: Business /Continuous Improvement
Radical change can lead to firm disadvantages, and often small but continuous improvement
leads to radical change in firm performance.(Rayna and Striukova, 2009). When implemented
as a companywide strategy by setting KPI for its functional processes, continuous
improvement can achieve economies of scope (shared activities) and economies of
scale(volume efficiencies) and thus attain several competitive advantages for differentiation
and Low cost simultaneously. (Flynn and Flynn, 1996). Many such studies (Wright et al., 1991;
Datta, 2010; Mi, 2015; Zheng, 2009) suggest that continuous improvement in the form of
product Differentiation and Low-cost strategy simultaneously generates better results.
Astra's Strategic choices to pursue Low-Cost Strategy and Differentiation simultaneously

Page 9 of 20
 ASSIGNMENT EM4053- STRATEGIC DECISION ANALYSIS

requires the Business Level focus rather than product level. With the existing segment being
mature and Astra entering new B2B, B2C markets, it requires the firm-level strategy to be
implemented with an overall objective of being sustainable in the long term and achieving a
tactical advantage in the short term. Business KPIs also aligns with the Lean Implementation
roadmap suggested for overall value streams mapping processes, touching all organisation
function(Hines and Rich, 1997).

Risk:
Profitability based business metrics often ignore the Customer focus. Focusing on Overall
business rather than the newly launched products may result in a loss in the customer value
proposition. However, with Lean manufacturing alongside, this risk is mitigated to a certain
extent.

Rewards:
Continuous improvement will provide Astra with a sustained competitive advantage as it is
difficult for the competitor to imitate the CI process and culture once established in the
organisation. Overall, business metrics will ascertain uniform absorption of these systems and
processes across all functions, thus creating synergy. Achieving business objective without
addressing the individual product's performance is not possible; thus, Business Matrices will
automatically focus holistically on overall customer experience and profitability.

Page 10 of 20
 ASSIGNMENT EM4053- STRATEGIC DECISION ANALYSIS

Strategy Analysis
 What are the key learnings?
 How would you change your decision?
Evaluation of the completed decision process and key learnings (1,500-2,000 words):

Strategic analysis and Key Learnings

Each decision-making round unfolds the real-world decision-making scenarios which an
Operation Director might face in his lifetime. The trade-offs, the constraints in choice, the
time to submit decision made this subject attractive, and the approach adopted made a long-
lasting impact. Below is the analysis of key learnings and the strategic choices:

Industry Supply Chain Analysis & Astra's present positioning within industry.
Astra’s Unique business environment as the PC manufacturer and the sector IT Hardware in
which it was operating provided with the opportunity to understand the entire supply chain
of the IT Hardware sector. The sector primarily consisted of three segments('Asian IT
Hardware: Running Faster Just to Stay in Place,' 2011)
A. TFT-LCD display segment or Display world
B. The Electronics Manufacturing Services (EMS) /Original Design Manufacturers (ODM)
sector or Manufacturing and System Integration World
C. The PC OEM segment or Brand and Channel World
Based on Astra’s presence as PC manufacturing for Desktops and Notebook/Laptop, we
understand Astra’s presence in Brand & Channel Market as PC OEM and some part of
EMS/ODM world as owner of manufacturing facilities. Astra’s presence in Display World is
considered based on the Display technology developed.

Explaining the Strategy of Astra from Operational Director’s Lens:

As an operational Director (OD), it was known that the profits and revenues are down, and
laptops are not doing as expected from them. Thus, the strategy to be pursued needs both
short term (i.e., Focusing on existing products) and long-term objectives. While charting out
the strategy following aspects are considered by OD:
A. The firm's current ability,
B. Exploiting key competencies,
C. Not increasing the cost of capital for raising money for capital expenditure radically
in the short term,
D. Talent and leadership.
E. Time horizon (Short term and long term)
Based on the above, Figure 2 reflects the various aspects such as Astra’s Differentiators,
Astra’s Market and Astra’s Enablers and Key areas to improve the Competitive Advantages
from OD lens, as explained below.

Page 11 of 20
 ASSIGNMENT EM4053- STRATEGIC DECISION ANALYSIS

A. Astra’s Overall Strategy, Product Mix & Market

Based on Astra’s Internal Strength analysis in Table A, the Product strategy will comprise
pursuing Product Differentiation and Low-Cost simultaneously, aka “Astra’s Best Cost
Strategy”, as Astra have high-end manufacturing capabilities and Display technology in-
house. Astra’s Differentiators are depicted in Figure 2.
Porter (1985) suggested that the organisation will be “stuck in middle” & loose Sustained
Competitive Advantage if it simultaneously pursues both low cost and differentiation.
Studies by Datta (2010) criticises that only differentiation as a strategy with Lost Cost
being termed as “Price Differentiation”. Other action researchers (Baroto, Abdullah and
Wan, 2012;Flynn and Flynn, 1996) suggesting “a more profitability in the long run when
pursuing both simultaneously” supports the viewpoint of Operational Director.

With Notebook & PC segment being approaching maturity, it makes sense to diversify in
another profitable segment. Astra enters the Display segment immediately and then to
Tablet/Phone with cost advantage derived from control of raw material (display), which
form 16% cost. (Sacconaghi Jr et al., 2011). Astra’s Short term and long terms product
transition is depicted in Figure 2. Transitioning from Laptop & PC to Displays immediately

Page 12 of 20
 ASSIGNMENT EM4053- STRATEGIC DECISION ANALYSIS

and finally to Laptop, Displays, Tablets & Phone in the long-term horizon, Astra will, move
away from Desktop PC in the long run.
Figure 2 Astra’s Strategy Road Map from the Lens of Operational Director.
B. Astra’s Enabler for Corporate Strategy
In order to achieve sustained competitive advantage, resources must satisfy the VRIO
framework (Barney, 1991); Cardeal and Antonio, 2012). Thus, to obtain the core
competencies, it was necessary to develop the culture, system and process(Cardeal and
Antonio, 2012)(Cardeal and Antonio, 2012)(Cardeal and Antonio, 2012)(Cardeal and
Antonio, 2012)(Cardeal and Antonio, 2012)(Cardeal and Antonio, 2012). Thus, Astra’s
focus is on developing long term sustainable core competencies through the proposed
technology Landscape in Figure 2 above. Astra will continue innovating existing high-end
computing & display capabilities and gain a competitive advantage for Tablets/Phone
technologies through R&D and strategic alliances in Technologies and New product
development/sourcing areas.
C. Cost Reduction
We assume that being a PC manufacturer, Astra already has much integration and have
design & manufacturing capabilities for PC and Laptops. With Product diversification as a
product strategy, the manufacturing strategy needs to be aligned such that it utilises the
economies of scope for the new product lines. (Helfat and Eisenhardt, 2004). The
economies of scope suggested that the sharing of process within the products lines can
have the flexibility to cater to many product lines, such as design, sourcing, assemblies
etc., which can contribute toward competitive advantages. Thus, aligning with Product
Strategy, PC & Laptop manufacturing will slowly outsource to reduce cost, and existing
capacity will be utilised to build Display, Tablets and Phones as far as Resource flexibility
allows. The process that requires huge capital investment will not be pursued immediately
unless it provides long-term Competitive Advantages since Astra's profit needs
improvement in the short term. Thus, strategic manufacturing alliances will be an
immediate short-term initiative instead of capital investment.
D. Time to Market, Customer Focus & Waste Reduction aligned to Astra's Best Cost
strategy through Lean manufacturing.
Lean principles viz., Specify Value, Identifying the Value Stream, Flow, Pull and perfection
transform the entire organisation from departments to value-adding teams which achieve
focus towards customers satisfaction, reducing waste-Lower costs, removing inventories,
Reduction in Product lead time to market, increased productivity and increasing employee
morale and engagement. (Womack and Jones, 1997; Lysons and Farrington, 2006). With
the industry's cost pressure, Lean is the most obvious choice for the overall
transformation required by Astra. Pursuing Lean as part of quality and manufacturing
strategy was perceived sufficient given Astra's environment and present cost impact.
E. Balancing Asset Reduction and Augmentation.
Astra’s Asset Management Strategy is depicted in Figure 3 with short-term and long-term
time horizons. With the PC industry entering the Decline phase of the product life cycle,

Page 13 of 20
 ASSIGNMENT EM4053- STRATEGIC DECISION ANALYSIS

the standards and process are pretty governed by dominant design, with minimal scope
for innovations(Suárez and Utterback, 1995). Consolidation of Firms is seen in this sector
with several players getting less year on year.('Asian IT Hardware: Running Faster Just to
Stay in Place,' 2011).
Outsourcing provides another aspect of cost reduction for non-value-add
activities.(Lankford and Parsa, 1999). Long-term Strategic Partnership for contract
manufacturing of PC & Laptops can provide additional space for cost reduction and
strategic advantage (Hines and Rich, 1998). However, on the phone/Tablet, the dominant
design is still not reached; thus, many designs characterise this sector, and hence it will
be prudent to have manufacturing/design capacity increased in-house for this sector.
(Sacconaghi Jr et al., 2011). Outsourcing for Tablets /Phones may not be helpful in the
long run as there are no industry standards and the chances of the quality issue arising
due to variability are pretty likely.

Figure 3 Astra’s Asset Strategy for Short term and Long term.

Strategy Execution Road Map- Holistic Approach for effective

implementation and strategic decision making.
Nearly 70% of all Strategic Changes fails(Beer and Nohria, 2000), and managers could not
recognise that Change management is a process and not an event(Kotter, 1995). Below,
Table F presents the analysis of the Change Management theories.

Table E: Importance of People Aspect in Change Management.

Thus, change management requires both the organisation structure and people mindset
change, else the desired outcome is not achieved. Taking a clue from the various studies

Page 14 of 20
 ASSIGNMENT EM4053- STRATEGIC DECISION ANALYSIS

The operation director has proposed the following Strategy Execution Roadmaps as
shown in Figure 4. Below are the stages:

 Astra's will first align its vision, and mission statement to the strategy adopted.
Leadership and Communication within the organisation will be key differentiator for
the implementation success. Astra should pursue any customer/demand process to
identify potential gaps suggested through SERVQUAL ((Parasuraman, Zeithaml and
Berry, 1988), QFD or Six Sigma, etc., focused and holistic initiatives focusing towards
Customer Experience and requirement gathering. Focus on customer shall be a
continuous process embedded in the work process and not a one-time activity.
 Astra will implement KPI at the overall business and functional level. Balance
Scorecard is an initiative that covers nearly all functions of the organisation and
suitable for Astra to pursue. Astra's overall strategy is a Low-cost structure with
differentiation. Thus, the KPI which enforces the strategic objective holistically is
implemented.

 Astra will pursue Continuous improvement as this supports the sustained competitive
advantage, product differentiation strategy and adds resilience.

Figure 4 Holistic Strategy Execution Road Map from the Lens of Astra’s Operational
Director

 Astra will align the organisation structure that reinforces the strategy execution.
Strategy can be subject to change as per results achieved, making the Organisation

Page 15 of 20
 ASSIGNMENT EM4053- STRATEGIC DECISION ANALYSIS

structure mildly dynamic in the short term.

 Cost reduction, except for R&D, will be a common theme across the organisation to
make Astra a Leaner and customer/market-focused organisation.
 Astra will utilise the existing marketing channels to reach the consumers and invest in
Marketing Campaign to building the brand value and perception of "Value of Money"
in the existing and new target segment.
 Employees getting redundant will be provided with an opportunity for re-skilling and
training.
 All KPI’s will be periodically monitored, and short terms functional tactics will emerge
to achieve the desired outcome.
Thus, a culture for employee motivation, rewards, empowerment, and continuous
improvement will provide Astra with an additional Competitive advantage and make the
implementation successful.

Change in the Chosen Decision.

As part of the reflection process, though no decision needs to change, the following
additional points can be pursued if the constraints of choices cease to exist.
A. Capacity should be increased based on Demand estimation and not immediately, but
gradually. Thus, it will be prudent to implement changes after a 1-2 years horizon
based on demand estimation.
B. Organisation Structure needs to move towards divisional once the economies of scope
in process and resources are established. Divisional structure is preferable for
diversified strategies and heterogeneous environment.(Bernstein and Nohria, 1991) It
provides increased accountability which is required for the new product market.
C. After Implementing the Business wide KPI, once the profitability is achieved, the focus
shall move towards product based KPIs and more divisional KPIs culminating with
business KPIs. PC as a product needs to be stopped if it does not contribute much to
the Overall Long-Term Sustainability.
D. If possible and based on financial conditions, Lean Six Sigma should be clubbed
without ISO implementation from next 1-2 years horizon for Astra.

Summary of Key Learnings and outcomes.

A. Complete IT Hardware Industry Value chain has been studied from the operations
perspective.
B. The trade-off for Efficiencies Vs Effectiveness has been used while selecting the Lean
and Agile Implementation in Astra. Trades-off such as Cost and Quality were studied
during the decision for Six Sigma, ISO and Lean/Agile strategies. Trades-off, such as
Responsiveness Vs Resilient, Vertical Integration Vs Outsourcing, Cost Structure Vs
Resource Flexibility, Business Focus Vs Customer Focus, Matrix Vs Functional Structure
studied and when to choose what has been implemented while taking strategic
decision.
C. Deeply analyised formulation of Operational Strategy, Core Competencies, Market
dynamics as part of the decision-making process for Astra.

Page 16 of 20
 ASSIGNMENT EM4053- STRATEGIC DECISION ANALYSIS

D. Setting up of Business KPI and leading the Change or Implementation of Strategies has
been learned through Astra's multiple decision-making rounds.
E. Any change without a holistic approach may not yield the desired outcomes. Thus,
operations personal should have a holistic view of Market, Demand, Operations, HR
and change management concepts.
F. Strategy Chosen is more likely to change as external/internal conditions influence it,
and the initial assumption is challenged. Thus, continuous monitoring, strategic
alignment and validation of assumptions are required during the implementation.

Page 17 of 20
 ASSIGNMENT EM4053- STRATEGIC DECISION ANALYSIS

References
Antony, J. (2011) 'Six Sigma vs lean', International Journal of Productivity and Performance
Management.

'Asian IT Hardware: Running Faster Just to Stay in Place', (2011) Bernstein Black Book - Asian
IT Hardware: Running Faster Just to Stay in Place, pp. 1-334.

Barney, J. (1991) 'Firm resources and sustained competitive advantage', Journal of

management, 17(1), pp. 99-120.

Beer, M. and Nohria, N. (2000) 'Cracking the code of change', HBR’s 10 must reads on change,
78(3), pp. 133-141.

Bendell, T. (2006) 'A review and comparison of six sigma and the lean organisations', The TQM
magazine.

Bernstein, E. and Nohria, N. (1991) 'Note on organizational structure'.

Cai, B. (2021) Computer Tablet Manufacturing in China - MyIBISWorld. Available at:

https://my.ibisworld.com/cn/en/industry/4041a/about.

Cardeal, N. and Antonio, N. S. (2012) 'Valuable, rare, inimitable resources and organization
(VRIO) resources or valuable, rare, inimitable resources (VRI) capabilities: What leads to
competitive advantage?', Cardeal, N., António, (2012), pp. 10159-10170.

Chatterjee, S. and Wernerfelt, B. (1991) 'The link between resources and type of
diversification: Theory and evidence', Strategic management journal, 12(1), pp. 33-48.

Chen Yongfu, L. F., Li Yongwei, Yu Huanni Yang Zhengde (2017) 'ASUSTeK Computer Inc.
Strategic Business Analysis'.

Chiang, C. C. (2010) 'Product diversification in competitive R&D-intensive firms: An empirical

study of the computer software industry', Journal of Applied Business Research (JABR), 26(1).

Dahlgaard-Park, S. M., Andersson, R., Eriksson, H. and Torstensson, H. (2006) 'Similarities and
differences between TQM, six sigma and lean', The TQM magazine.

Datta, Y. (2010) 'A critique of Porter's cost leadership and differentiation strategies', Chinese
Business Review, 9(4), pp. 37.

Dedrick, J., Kraemer, K. L. and Draemer, K. L. (1998) Asia's Computer Challenge : Threat or
Opportunity for the United States and the World? Cary, UNITED STATES: Oxford University
Press, Incorporated.

Erel, E. and Ghosh, J. B. (1997) 'ISO 9000 implementation in Turkish industry', International
Journal of Operations & Production Management.

Page 18 of 20
 ASSIGNMENT EM4053- STRATEGIC DECISION ANALYSIS

Flynn, E. J. and Flynn, B. B. (1996) 'Achieving simultaneous cost and differentiation

competitive advantages through continuous improvement: world class manufacturing as a
competitive strategy', Journal of Managerial Issues, pp. 360-379.

Ghemawat, P. (2002) 'Competition and business strategy in historical perspective', Business

history review, 76(1), pp. 37-74.

Gonzales, E. (2020) 'C2523-GL Global Computer Hardware Manufacturing - MyIBISWorld'.

Greycampus (2021). Available at: https://www.greycampus.com/opencampus/lean-six-

sigma-green-belt/difference-between-lean-and-six-sigma.

Helfat, C. E. and Eisenhardt, K. M. (2004) 'Inter-temporal economies of scope, organizational

modularity, and the dynamics of diversification', Strategic Management Journal, 25(13), pp.
1217-1232.

Hines, P. and Rich, N. (1997) 'The seven value stream mapping tools', International journal of
operations & production management.

Hines, P. and Rich, N. (1998) 'Outsourcing competitive advantage: the use of supplier
associations', International Journal of Physical Distribution & Logistics Management.

Kotter, J. P. (1995) 'Leading change: Why transformation efforts fail'.

Kuo, T.-K., Lim, S. S. and Sonko, L. K. (2018) 'Catch-up strategy of latecomer firms in Asia: a
case study of innovation ambidexterity in PC industry', Technology Analysis & Strategic
Management, 30(12), pp. 1483-1497.

Lankford, W. M. and Parsa, F. (1999) 'Outsourcing: a primer', Management Decision.

Lysons, K. and Farrington, B. (2006) Purchasing and supply chain management. Pearson
Education.

Markides, C. C. and Williamson, P. J. (1996) 'Corporate diversification and organizational

structure: A resource-based view', Academy of Management journal, 39(2), pp. 340-367.

Mi, J. (2015) 'Blue ocean strategy', Wiley Encyclopedia of Management, pp. 1-1.

Parasuraman, A., Zeithaml, V. A. and Berry, L. (1988) 'SERVQUAL: A multiple-item scale for
measuring consumer perceptions of service quality', 1988, 64(1), pp. 12-40.

Pickrell, G., Lyons, H. J. and Shaver, J. (2005) 'Lean Six Sigma implementation case studies',
International Journal of Six Sigma and Competitive Advantage, 1(4), pp. 369-379.

Porter, M.E. (1985) 'Creating and sustaining superior performance', Competitive advantage,
167, pp.167-206.

Rayna, T. and Striukova, L. (2009) 'The curse of the first-mover: when incremental innovation
leads to radical change', International Journal of Collaborative Enterprise, 1(1), pp. 4-21.

Page 19 of 20
 ASSIGNMENT EM4053- STRATEGIC DECISION ANALYSIS

Sacconaghi Jr, A. M., Ferragu, P., Moel, A. and Rasgon, S. (2011) 'Let's Talk Tablets: A Form
Factor Revolution?', Bernstein White Book - Let's Talk Tablets: A Form Factor Revolution?, pp.
1-47.

Suárez, F. F. and Utterback, J. M. (1995) 'Dominant designs and the survival of firms', Strategic
management journal, 16(6), pp. 415-430.

Womack, J. P. and Jones, D. T. (1997) 'Lean thinking—banish waste and create wealth in your
corporation', Journal of the Operational Research Society, 48(11), pp. 1148-1148.

Wright, P., Kroll, M., Tu, H. and Helms, M. (1991) 'Generic strategies and business
performance: an empirical study of the screw machine products industry', British Journal of
Management, 2(1), pp. 57-65.

Zheng, B. 'The Combination Comptetive Strategy and Its Performance: A Empirical Study from
China'. 2009 International Conference on Information Management, Innovation Management
and Industrial Engineering: IEEE, 218-221.

Page 20 of 20