Scenario: John is operating a business in the Caribbean in the manufacturing sec

John is operating a business in the Caribbean in the manufacturing sector. Over the years the
business has grown and become profitable and as a result the structure of the organization must
reflect the changing business needs. He started off with just an accountant and general
administrative department. Due to the growth of the organization, there is now a need for a
marketing and sales department, IT department, production department, risk department,
operations department, human resource department, finance department, research and
development department and health and safety department. John is considering implementing a
functional structure. This way specialist departments are able to focus on their tasks and meet their
objectives. John is also concerned about his value chain and would like further insight on this grey
area in his business function. Since the business is doing well locally, John is considering
expanding to parts of the United Kingdom, Canada and Asia. As such, he is considering the
development of a global strategy. John understands that to shape the organization’s overall
strategy there are various strategic drivers both internal and external which must be considered
and wants expert advice on these drivers relevant to his business. Though the market is
competitive John’s company is known to be innovative. He has also demonstrated a care for the
environment which has added value to his organization and his success.
As a Strategic Management Consultant:
1. Discuss the functional structure type which John is considering. You must include benefits
and drawbacks of this type of structure. Also, what other type of structure could John
consider if he wants to organize employees around core processes? Discuss the benefits
and drawbacks of this structure. Also, based on the departments mentioned in the scenario
what would this structure look like graphically?
2. Discuss Goold and Campbell five tests based on good general design principles and how
this will influence the structures discussed in 1.
3. Explain to John what value chain analysis is. What is the relevance of this to the
manufacturing sector? Discuss four (4) major cost drivers that would play a role in
determining John’s company’s costs in each activity segment of the value chain. Make
relevant links to manufacturing firms in the Caribbean.
4. As discussed in the course, state three (3) benefits and three (3) drawbacks of the global
strategy if John is to pursue this.
5. If John decides to expand to South Korea, Canada, Taiwan, Thailand or Japan (choose one)
conduct a PESTEL analysis on the manufacturing sector in the chosen country. Based on
your analysis would you recommend that John continues to expand in the chosen country?
Discuss at least three (3) reasons why or why not.
MGMT 3031 – BUSINESS STRATEGY & POLICY – Course Information. Academic Year 2022/2023, Semester 2
6. Explain to John, based on the information included in the scenario, the key drivers, linked
to what was discussed in the course, that would affect strategic management and decision
making in the organization.