ASSESSMENT 2 BRIEF
Subject Code and Title: MGT602 Business Decision Analytics
Assessment: Case Study Presentation and Report
Individual/Group: Group (4-5 students)
Length: Up to 3,000 words per group; 10 minute presentation
Learning Outcomes: SLO a Select and evaluate the usefulness of a range of decision making tools and reflect on your decision making styles and contrast with other styles to determine the respective levels of rationality and intuition utilised SLO b Compare, contrast and critically evaluate sources of data as influences for decision-making in a range of business contexts SLO c Examine and evaluate decision-making systems and techniques to engage group decisions and analyse how these can enhance sustainable outcomes SLO d Critically examine emerging tools and technologies for decision making
Total Marks: 40 marks
In today’s workplaces, collaborative team-work is expected. Diversity in teams is a reality , but can lead to conflict and tensions, due to lack of intercultural intelligence, dominant personalities, or poor decisions due to passivity of members who may succumb to group-think (Janis, 1972), or who may be biased and have multiple blind spots.
ASSESSMENT 2 requires you to design your own organisational research project:
1. Apply decision-making systems and techniques in a group to interrogate and interpret a range of data analytics pertinent to a relevant contemporary organisational challenge. 2. Evaluate those systems and techniques to support effective decision-making in organisations 3. Engage as a team to present your findings in a visual, oral and written form that informs and influences the audience to make effective decisions in organisations 4. Support your argument with relevant contemporary literature including major resources from within the subject modules.
With guidance from your facilitator, form a team of 4-5 classmates by week 4. Diversity considerations may include: ethnicity; gender; learning styles; personality; decision-making preferences; work experience; first degrees; level of study (just starting/ almost finished); strengths; technical skills; values.
In the first 1-2 weeks, share your stories, and diversity, and summarise these in a table. Review what elements support high performing teams, and how each team member will support the project.
Prepare a project plan, and maintain records of meetings, actions (who/what/how/when). On a weekly basis, upload key points into your group space in Blackboard, and contribute to each weekly discussion forum as a team.
As a team, brainstorm project decision-making challenges you have experienced in the workplace, and which challenge you want to focus on to demonstrate effective decision-making as a team. Imagine you hold key roles in a medium-large size organisation. You will need to nominate your roles, and explain the operating context of the organisation (industry, location, size, products/ services/ organisation. Challenges may relate to understanding your target market for the launch of a new product/ service; recruiting highly qualified staff; acquisition/ merger; operations; manufacturing; logistics; information systems.
You will need to access a large publicly available data set relevant to your organisational challenge (Government Census/ polls/ surveys/ Google analytics). You will need to interrogate this data sethow were the data collected; how valid/ representative are they; how meaningful are they?
CHECKPOINT:BY WEEK 6, PRESENT A DRAFT OUTLINE OF YOUR REPORT TO YOUR LEARNING FACILITATOR FOR FEEDBACK
How will you use these data to support your decision-making for your organisational challenge?
Select and utilise at least three different decision-making tools to support your recommendations. Do these tools support each other, or suggest alternative pathways? How can you create a visual representation of the data patterns/ trends to inform and influence your executive team to implement the recommendations for your project? Do not simply copy and paste – you need to create your own visualisation.
Your assessment response should make use of relevant, contemporary decision models and theories, team process and group dynamics theories drawn from academic research papers and articles in support of your argument .
You need to present as a team (ie, all members to participate) in a video / live presentation (10 minutes)in week 8; plus submit a case study research report that defines: the brief; the aims of your study; the scope; key research questions; team introduction and summary of team diversity; literature review on teams and decision-making; use of data analytics; source of data, rationale for use; analysis, interpretation and presentation of selected data; discussion, recommendations; so what (significance of using D-M tools and team dynamics); list of references, and appendices to include team project plan, individual team process feedback and synthesised summary agreed by all team members.
Business Decision Analytics
Assessment of feasibility is necessary to assess the future sustainability of a company. The report has shown the feasibility of Lion Dairy and Drinks Company of Australia. The macro level feasibility has shown how the company has cope with the macro environment factors. The micro-level feasibility has discussed how the company has become feasible internally through its strengths and opportunities in the competitive market. The success factor analysis has described how different strategies of Lion Dairy have helped the company to. Further, through social media platforms, the company needs to keep a healthy relationship with its customers for long-term sustainable business and its needs to make a legal contract with the local suppliers in the country. These strategies would help the company in gaining competitive advantage over the competitors and succeed in the competitive market in Singapore.
Lion Pty Ltd. is a branded company in Australia and its main products are juice, beer, ready-to-drink food, non-alcohol beverage and some other dairy products (Foodbev, 2019). The company aims at maximum growth in the future. The company has a target to accelerate its business growth in Singapore. In Singapore, the sale of milk products is expected to increase annually by 2.9% by 2020-2023 (Statista, 2020a).
Figure 1: Growth rate of dairy industry in Singapore
Source: (Statist, 2020a)
Specific types of milk produces like milk and cream, yoghurt and cheese have added value to the milk products in Singapore. The revenue generated from the sales of these milk products has amounted to AUD $ 995 million in the year 2020 (Statista, 2020a). Drinking milk products has not been a major tradition among the adults in Singapore. However, almost 50% of the population in the country consumes the products (Market Research, 2020). Most of them like to add milk in their coffee or tea. On the ground of the above analysis, it can be said that the social demand for milk products in Singapore will help Lion Dairy to expand its business.
The demand of milk products in the country can be estimated from the fact that around 1,581,000 metric tons of milk and milk products have been imported in the year 2019 (Statista, 2020b). There is also strong competition in the import of the dairy products in the country is estimated by the demand of huge volumes of dairy products in the country.
Figure 2: Volume of dairy products imported in Singapore
Source: (Statista, 2020b)
This signifies the domestic producers to be experiencing huge competition in the market. Thus, it can be said that Lion Pty Ltd. is to face a huge amount of competition in the market.
There are certain factors that work behind the success of Lion Dairy and Drink. Firstly, wide range of products of Lion Dairy has attracted lots of customers to purchase products from the market. Secondly, the strong business agreement between Australia and Singapore has helped the company to expand its business. Australia’s strong economic growth has supported the business in Singapore (Lionco, 2020). Thirdly, the strong business model followed by Lion Dairy has helped the company to gain sustainability in the Australian and international market (Lionco, 2020). Low risk, low-cost model, established legislations – all these parts of the business model have helped the company to gain profit at a low cost in the competitive market. The service contract is the other joint interest behind the success factors of the company. Through the service contract, vendors have also made Lion Dairy satisfied.
There are some major Competitors of Lion Dairy & Drinks in Singapore like F&N Foods, Carnation Pte Ltd, Yakult, Milkmaid, Kraft Foods Pte Ltd, and others. Each of the competitors follows their own unique strategies in Singapore. The following Porter’s five forces of Lion Dairy & Drink will discuss different types of threats in its business and it will explain the company should overcome its threats.
The bargaining power of buyers: Lin McCarthy, & Richards ( 2017) have defined the bargaining power of buyers as buying loyalty. There are other food and beverage companies in Singapore like F&N Foods, Milkmaid, Kraft Foods Pte Ltd and others who provide food and drinks to the customers. If the customers get the same Dairy and drinks products which Lion serves at a lower cost, then customers can switch to the other competitors. Apart from this, customers, to avoid standing on a queue for buying products for a long time, can buy products from other competitors. Hence, this threat is high. to mitigate this threat, Lion has to play cost leadership policy and provide good service.
Suppliers’ buying power: The bargaining power of suppliers is very high in the dairy industry in the country as the country has scarcity or non-reporting of dairy farms (United Nations, 2016). The management at Lion Pty Ltd. needs to make a bold move by making a legal agreement with the suppliers. This strategy made them gain the advantage of long term agreement over the prices of dairy products.
Competitive rivalry: There are both big and small competitors of Lion Dairy in Australia. Of the competitors, F&N Foods, Milkmaid, Kraft Foods Pte Ltd are big names. Apart from this, there are some local companies and restaurants in Australia that provide food and drink products. For example, Milkmaid is an MNC and the company is powerful enough to remain competitive in the Singapore competitive market. Hence, the threat from competitive rivalry is high here. To combat this threat, Lion has to play product differentiation policy so that the customers will be satisfied by getting different types of products at an affordable price. Further, through social media platforms, the Pioneers of the company should keep a good relationship with its customers for long-term sustainable business. The feedback from the company website and social media platforms will help the Pioneers to modify different types of dairy and drink products.
Substitute products: Differentiating joints of beverages and dairy products are one of the major selling capacities and hence, there is a high threat of replacing Lion’s Dairy and beverage products by the other competitors in the Singaporean market. Anthony & Susan (2017) have referred product differentiation as a weapon for threats from substitute products. There is a competition in the uniqueness of products between Lion Dairy and others. Innovative healthy Dairy and drinks products from Lion Dairy can mitigate this threat.
Threats from new entrants: An entrepreneur in Australia needs a complex set of legal permissions from the Singapore Government to enter Dairy & drink industry. The uniqueness of products is necessary with necessary modifications because, in Singapore Dairy and drink companies like Milkmaid have multination chains. All these legal and business strategies establish low threat from new entrants in the Australian market. Therefore, Lion Dairy can take this advantage.
Jiang, Ananthram & Li (2018) have discussed different entry modes with decision making. To make an entry in Singaporean market, the Contingency Model of Mode of Entry Decision will be selected. This model was published in the year 1997.
Figure 1: Diagram showing decision-making process
(Source: Created by the learner)
Stage 1: Recognition of the need to operate in Singaporean market
In this stage, problem will be defined as gap between the desired state and the actual state. The need for operating in the Singaporean market will be identified with the meeting of CEO and marketing VP of the Lion Dairy. Management has perceived that different milk products will gain competitive advantage. This part has done the analysis of the demand of people for milk products and how the milk group products will meet the demand of the people. This will highlight the strictness of Singapore Government laws and how they can affect the company’s business in the future.
Stage 2: Evaluation of resources and quality information
After analyzing the needs, here, the entire projection for the year is compared with the economy of Singapore. In addition, the need of the targeted group in Singapore has been represented and it has been shown how the targeted group can be an opportunity for the company. The managers at Lion Dairy will highlight the health aspect of the customers as most of them in Singapore are health conscious. The company will highlight that they are conscious about the health of the people.
Stage 3: Selection and decision strategy
Some strategies of entry like country specific factors, industry specific factors, product specific and company specific factors will be considered in this stage. The company needs to formulate strategies upon analyzing the demand of the products in the new market. After the analysis, it has been observed that of all the milk and drink products, the milk products of Lion Dairy will be fully profitable for Singapore market.
Stage 4: Processing of data selection and information
In this stage, the required data about the market opportunities in the dairy industry of Singapore will be collected. Johnston (2017) has discussed the importance of the analysis of secondary data. Secondary market entry data from online website sources based on Singapore will be collected to analyze and consider. According to the report of Euromonitor International the demand of drinking milk products in Singaporean is increasing day by day. The report says that the milk products consumed in the year 2016 in Singapore was 53,386.6 tonnes which was against 47,042.2 tonnes in the year 2011 and the increase in the year 2016 was 12% (Bhaskaran, 2018). Keeping this point in mind and the extensive analysis, the Pioneers of Lion Dairy have expected threat only the milk products of the company will be able to gain the maximum shares in the Singapore market. The milk product of the company will be able to meet the needs of the Singaporean customers.
From the analysis, it is evident that the revenue generated from the sales of these milk products in Singapore amounts to AUD $ 995 million in the year 2020 (Statista, 2020a). This could be an opportunity for the Lion Dairy to explore on.
Stage 5: Selection of entry mode
This is the final stage of entry mode for Lion Dairy in the Singaporean market. These market entry modes can be categories into sole proprietorship, licensing, making strategic alliances and franchising. The analysis of the secondary data will be aligned to the objectives of entering in the Singapore market and thus, decision will be taken finally. As evident from the analysis above in the paper, it is evident that the country has a greater demand for these milk products. Moreover, there is no count of any specific performance of dairy farms in the country. Hence, the company should be establishing as a sole proprietor in the country as it could be the most suitable market entry strategy for the company.