1.

Explain the cycle view of a supply chain

2. Push and pull Boundary

1. Push: In the push approach, production and distribution decisions are driven
by forecasts and predictions of demand. Products are manufactured based on
these forecasts and then pushed through the supply chain to distribution
points. This approach is suitable for products with relatively stable demand
patterns, allowing for efficient production planning and inventory
management.
2. Pull: In the pull approach, production and distribution are triggered by actual
customer demand. Products are only manufactured and moved through the
supply chain as orders are received. This approach reduces the risk of
overproduction and excess inventory but requires a highly responsive and
flexible supply chain to meet varying customer demands.

Push-Pull Boundary: The push-pull boundary is the demarcation point within the
supply chain where the transition occurs between the push and pull approaches. It's
the point where the supply chain shifts from being driven by forecasts and
production planning (push) to being driven by actual customer orders and demand
(pull). This boundary is critical for determining how much inventory to keep at
different stages of the supply chain and how quickly the supply chain can respond to
changes in demand.

3. Explain the concept of demand uncertainty and implied demand uncertainty with
examples
Demand Uncertainty: Demand uncertainty refers to the unpredictability or variability in customer
demand for a product or service. It reflects the challenge of accurately forecasting how much of a
product customers will want to purchase within a given time frame. High demand uncertainty can
lead to supply chain inefficiencies, such as excess inventory when demand is overestimated or
stockouts when demand is underestimated.

Implied Demand Uncertainty: Implied demand uncertainty is the level of uncertainty that ripples
through the supply chain due to variations in customer demand. It's not just the direct uncertainty in
customer orders but also the uncertainty that gets magnified as it moves upstream through the
supply chain stages. This often happens due to the "bullwhip effect," where small fluctuations in
customer demand lead to larger and more erratic fluctuations in orders further up the supply chain.

Example: Consider a smartphone manufacturer. Demand uncertainty in this context might arise due
to factors like changing consumer preferences, new product releases from competitors, and
economic conditions. If the manufacturer predicts a certain level of demand for a new smartphone
model but the actual demand turns out to be much higher or lower, this reflects demand
uncertainty.

4. Differentiate between efficient and responsive supply chain. 5

Efficient Supply Chain: An efficient supply chain focuses on minimizing costs and
optimizing resources to deliver products at the lowest possible cost. It strives to
eliminate waste, reduce inventory, and streamline processes to achieve economies of
scale. An efficient supply chain is well-suited for products with stable and predictable
demand patterns. However, it might be less responsive to sudden changes in
customer demand or market dynamics.

Responsive Supply Chain: A responsive supply chain prioritizes flexibility and agility
to quickly adapt to changes in customer demand, market trends, or unforeseen
events. It aims to fulfill customer orders promptly and effectively, even in the face of
demand volatility. A responsive supply chain maintains higher inventory levels and is
willing to incur higher costs to ensure quick order fulfillment. It's well-suited for
industries with rapidly changing demand, short product life cycles, or unpredictable
market conditions.

Difference: The main difference between an efficient and a responsive supply chain
lies in their primary objectives and trade-offs. An efficient supply chain aims to
minimize costs through optimized processes and reduced inventory, often at the
expense of being able to handle significant fluctuations in demand. A responsive
supply chain, on the other hand, emphasizes adaptability and customer satisfaction,
which may involve higher costs and inventory levels to meet unexpected changes in
demand or market conditions.

Part -B
1. India’s biggest milk brand Amul has diversified and forayed into the organic food
market and carbonated soft drink market. Making use of the 3 horizon framework of
strategy explain the strategy used by Amul for diversification.

n the context of the 3 Horizon Framework of strategy:

1. Horizon 1 (H1): Amul's focus remains on its core business, which is the dairy
and milk products market. This includes their traditional products like milk,
butter, and cheese. They continue to invest in improving efficiency, expanding
distribution, and maintaining their dominant position in the dairy industry.
2. Horizon 2 (H2): Amul's diversification into the organic food market
represents a move into adjacent markets that leverage their existing
competencies. They are leveraging their reputation for quality and reliability in
the food industry to enter the growing organic food sector. This is a strategic
move to capture new growth opportunities while staying within the broader
food industry.
 3. Horizon 3 (H3): The entry into the carbonated soft drink market reflects
Amul's exploration of entirely new markets or disruptive innovations. This
move is further away from their core dairy business and represents a more
exploratory approach to potentially tap into a new market segment and create
new revenue streams.

2. State with a suitable example how companies utilize scope to diversify and thus
remain ahead of competition

Utilizing Scope for Diversification:

Companies often leverage the concept of scope to diversify their offerings

and gain a competitive edge. Scope diversification involves expanding a
company's product or service portfolio to target new customer segments or
enter different markets. This strategy allows companies to capture
additional sources of revenue, mitigate risks associated with reliance on a
single product, and tap into new growth opportunities.

Example: Amazon

Amazon, initially an online bookstore, has effectively utilized scope

diversification to become one of the world's largest e-commerce platforms
and technology giants.

1. E-commerce: Amazon began as an online bookseller but gradually

expanded its product range to include electronics, clothing, home
goods, and more. This scope diversification allowed Amazon to
attract a broader customer base and become a one-stop shop for
various consumer needs.
2. Amazon Web Services (AWS): Recognizing its expertise in
managing vast amounts of data and computing resources, Amazon
entered the cloud computing market with AWS. This move diversified
their scope beyond e-commerce into the technology infrastructure
space, catering to businesses' computing needs.
3. Entertainment: Amazon acquired platforms like Audible for
audiobooks and later launched Amazon Prime Video for streaming
movies and TV shows. This diversification into digital entertainment
services expanded their scope beyond physical products.
4. Amazon Prime: The introduction of Amazon Prime not only
diversified their offerings but also built customer loyalty through
 features like fast shipping, exclusive deals, and access to digital
content.

By strategically diversifying their scope, Amazon was able to stay ahead of

competition by constantly reaching into new markets, appealing to
different customer segments, and building a comprehensive ecosystem.
This approach has helped Amazon establish dominance across multiple
industries, enhancing their competitive position.
3. Nestle India’s portfolio is very different from its parent. It is one of the few 10
countries where the product has lot of localization. India is among the few
countries that has a local R&D facility for a long time. Applying the strategy
lens of design identify the reason(s) behind the hyper localization of the
Indian market with appropriate figures.

Hyper-Localization of Nestle India's Market

The hyper-localization strategy of Nestle India can be analyzed through the lens of
the "Design" aspect of business strategy. This strategy focuses on tailoring products,
services, and operations to meet the specific needs and preferences of local markets.
In the case of Nestle India, this strategy involves adapting its product portfolio and
research and development efforts to cater to the unique demands of the Indian
market.

Reasons for Hyper-Localization:

1. Cultural and Culinary Diversity: India is known for its rich cultural and
culinary diversity. Different regions have distinct tastes, preferences, and
dietary habits. Nestle India's hyper-localization allows the company to offer
products that resonate with the diverse Indian palate.
2. Consumer Preferences: Localizing products to match consumer preferences
enhances their appeal. For example, Maggi noodles in India have a wide range
of flavors that are popular among Indian consumers, such as masala and atta
(whole wheat) variants.
3. Regulatory Compliance: India has unique regulatory requirements related to
food safety, labeling, and nutritional information. Adapting products to meet
these regulations ensures compliance and consumer trust.
4. Market Penetration: By offering products that are tailored to local tastes and
preferences, Nestle India can penetrate deeper into the market and gain a
competitive edge over products that are not adapted to the local context.

Local R&D Facility: Nestle India's local research and development facility has played
a crucial role in hyper-localization. It allows the company to understand the local
market better, develop products that resonate with consumers, and address specific
challenges related to ingredients, flavors, and cultural considerations.

HUL has shifted from the traditional distribution focused model that was distributor led to
retailer focus through the Shihar app. The retailers can order for company products directly.
Using the 3 levels of strategy identify the transition of the distribution channel in HUL from
the traditional distributor and salesman focus to retailer focus.

Corporate Level Strategy: At the corporate level, Hindustan Unilever Limited (HUL)
is focused on enhancing its competitive advantage and maintaining its position as a
leading consumer goods company in India. The shift in the distribution channel
aligns with the corporate strategy of innovation and adaptation to changing market
dynamics.

Business Unit Level Strategy: At the business unit level, HUL aims to improve
operational efficiency and customer experience within the distribution channel. The
transition from the traditional distributor-led model to the retailer-focused Shikhar
app reflects a business-level strategy of process improvement and leveraging
technology to streamline distribution.

Google’s vision statement is – To provide access to the world’s information in

one click. Making use of the concept of the role played by the vision statement
identify the strategy Google is asking its managers to do 20 years down the line.
Utilize at least an example to prove your argument.

Operational Level Strategy: At the operational level, HUL is implementing changes

in its distribution processes. The shift to the Shikhar app demonstrates an
operational strategy focused on enhancing convenience for retailers. By allowing
retailers to order products directly through the app, HUL simplifies the ordering
process, reduces the need for intermediaries, and ensures faster order fulfillment.

Vision Statement's Role:

A vision statement outlines an organization's long-term aspirations and goals,

providing a clear direction for the future. It guides decision-making, strategy
development, and actions of an organization. Analyzing Google's vision statement,
"To provide access to the world’s information in one click," reveals the strategic focus
and expectations the company has for its managers in the long term.

Google's Strategy 20 Years Down the Line:

Google's vision statement suggests that the company is prioritizing easy and instant
access to information. This indicates a future strategy where Google aims to continue
developing technologies that make accessing information seamless, efficient, and
globally accessible. Managers are expected to lead initiatives that align with this
vision, fostering innovation and creating tools that enhance information accessibility.

Example: Imagine a future scenario where Google's managers have implemented

advanced artificial intelligence (AI) and augmented reality (AR) technologies. A user
could be walking through a museum and, with a simple gesture, access detailed
historical information about each exhibit, presented in real-time through AR glasses.
This scenario aligns with Google's vision by providing instantaneous access to
information in a single click or gesture.

India in the recent years has seen a huge increase in FDI investment. A lot of
this can be attributed to a stable government in the centre. Making use of the 2
key dimension of political risk analysis with suitable example, construct the
reasons that are contributing towards this positive FDI flow.

Key Dimensions of Political Risk Analysis:

1. Stability: This dimension assesses the consistency and predictability of a

country's political environment. A stable government is more likely to provide
a favorable environment for businesses and investments.
2. Regulatory Environment: The regulatory environment includes factors such
as government policies, regulations, and legal frameworks that impact
business operations and investments. A transparent and business-friendly
regulatory environment encourages foreign direct investment (FDI).

Reasons Contributing to Positive FDI Flow in India:

1. Stability:
 Strong Leadership: A stable government led by a strong leadership
can instill confidence among investors. India's government stability
under Prime Minister Narendra Modi's leadership has been seen as
positive for FDI.
 Continuity of Policies: The government's commitment to policy
continuity and reforms reduces uncertainty and encourages long-term
investments. For instance, initiatives like "Make in India" promote
manufacturing and job creation.
2. Regulatory Environment:
 Ease of Doing Business: India's efforts to improve its ranking in the
World Bank's "Ease of Doing Business" index have led to reforms that
 simplify business processes, reduce bureaucracy, and enhance investor-
friendliness.
 Liberalization of FDI: India has progressively eased FDI restrictions
across various sectors, allowing greater foreign participation. For
example, sectors like retail, defense, and insurance have seen increased
FDI limits, attracting more investment.
The Indian pharmaceutical industries are known for its cheap quality generic
drugs that has helped many developing countries. Yet the recent incidents of
deaths of children in Gambia and Uzbekistan, eye drops causing blindness etc.
have been damaging the reputation of this industry, calling for a strong
regulation. Applying the Pestle Analysis identify the exposure of the
pharmaceutical industry to politics and the non-market factors.

PESTLE Analysis: Exposure of the Pharmaceutical Industry

Political Factors:

1. Regulatory Changes: Political decisions regarding drug regulation and

pricing can significantly impact the pharmaceutical industry. Stricter
regulations are being demanded due to safety concerns, as seen in incidents
like the deaths in Gambia and Uzbekistan. Governments may introduce more
stringent oversight and quality control measures.
2. Trade Agreements: International trade agreements and policies influence the
pharmaceutical industry's access to global markets. Trade disputes or changes
in intellectual property rights regulations can affect market access for Indian
generic drugs.

Economic Factors:

1. Pricing Pressures: Economic conditions in different countries can impact

pricing strategies. The pressure to provide cheap drugs might lead to
compromises in quality, affecting the industry's reputation. Balancing
affordability with quality becomes a challenge.
2. Currency Fluctuations: Exchange rate volatility can impact the cost of raw
materials, manufacturing, and exports, affecting the competitiveness of Indian
pharmaceuticals in the global market.

Social Factors:

1. Public Perception: Negative incidents like deaths and blindness due to

pharmaceutical products can erode public trust. Social media amplifies such
 incidents, impacting the industry's reputation and demand for Indian generic
drugs.
2. Healthcare Access: The availability and affordability of pharmaceutical
products directly affect healthcare access. The industry's reputation influences
governments' decisions to procure from Indian manufacturers.

Technological Factors:

1. Innovation: Technological advancements impact drug development,

manufacturing, and distribution. Indian pharmaceutical companies need to
invest in research and development to ensure product safety and quality.
2. Counterfeit Drugs: Technological advancements also enable counterfeiters to
produce fake drugs. Ensuring the authenticity of Indian pharmaceutical
products becomes crucial to avoid damage to the industry's reputation.

Legal Factors:

1. Intellectual Property Rights: Legal battles over patents and intellectual

property rights can impact the industry's ability to produce generic drugs.
Legal constraints might affect the industry's competitive advantage in
providing affordable drugs.
2. Product Liability: Incidents like eye drops causing blindness can lead to legal
actions and liabilities, affecting the industry's financial stability and reputation.

Environmental Factors:

1. Sustainability: Environmental concerns in pharmaceutical manufacturing

impact regulatory compliance and reputation. Adhering to environmental
standards is crucial to maintain market access.
The Indian telecom market has not seen a new player since Reliance Jio. Applying the
concept of height of barriers and making use of the 5 variables used to measure the
height of barriers identify the reasons behind the insulation of the telecom sector
from the threat of entry of new players. wih short answer

Height of Barriers Concept:

The "height of barriers" concept refers to the difficulty or ease for new firms to enter
a specific industry or market. These barriers can be categorized into various factors
that create obstacles for new entrants, thus protecting existing players from
increased competition. The five key variables used to measure the height of barriers
are:
 1. Economies of Scale: Existing telecom players like Airtel, Vodafone Idea, and
Reliance Jio have established large-scale operations, enabling them to spread
fixed costs over a larger customer base. This reduces their average cost per
unit, making it difficult for new entrants to achieve cost competitiveness.
2. Product Differentiation: Established players have developed distinct brand
identities and customer loyalty over time. New entrants would need to invest
heavily in marketing and product differentiation to attract customers away
from existing brands.
3. Capital Requirements: The telecom industry demands significant capital
investments for infrastructure, network rollout, and spectrum acquisition. The
need for substantial upfront investments acts as a significant barrier for new
players without access to large financial resources.
4. Access to Distribution Channels: Existing telecom operators have well-
established distribution networks, retail partnerships, and customer service
systems. New entrants would face challenges in building similar networks and
efficiently reaching customers.
5. Government Policy and Regulation: The telecom sector is heavily regulated,
and obtaining licenses, spectrum, and adhering to regulatory requirements
can be complex and time-consuming. Existing players are well-versed in
navigating these regulations, giving them an advantage over new entrants.

Reasons for Insulation of Telecom Sector:

1. Economies of Scale: The existing telecom operators have already achieved

economies of scale due to their extensive customer base and network
infrastructure. This gives them cost advantages that are hard for new players
to match.
2. Product Differentiation: Established telecom operators have built strong
brand identities and offer a range of services that attract and retain customers.
It would be challenging for new entrants to create a compelling value
proposition to compete against these well-established brands.
3. Capital Requirements: The high capital requirements for setting up telecom
infrastructure and acquiring spectrum licenses create a significant financial
barrier for new entrants.
4. Access to Distribution Channels: Existing operators have a wide network of
distribution channels, retail outlets, and customer touchpoints. This network is
not easy for new players to replicate quickly.
5. Government Policy and Regulation: The telecom sector is subject to
complex regulatory processes and licensing requirements. New entrants
would need to navigate these regulations, which can be time-consuming and
resource-intensive.
Big e-commerce giants like Amazon, Flipkart etc. is often accused of squeezing the margin
out of local retailers due to its gigantic buying power. Identify the 3 conditions that prevail in
the retail industry that is responsible for high bargaining power of buyers like Amazon,

High Bargaining Power of Buyers in the Retail Industry:

Buyers like Amazon and Flipkart have significant bargaining power in the retail
industry due to the following conditions:

1. Concentration of Buyers: When a few buyers dominate the market and

account for a large portion of the industry's purchases, their collective
bargaining power increases. Amazon and Flipkart are massive e-commerce
platforms with vast customer bases, allowing them to negotiate favorable
terms and prices from suppliers.
2. Availability of Substitutes: The availability of alternative suppliers or
substitutes reduces suppliers' leverage over buyers. In the case of Amazon and
Flipkart, they can easily switch between suppliers or offer similar products
from different sellers on their platforms, giving them greater negotiation
power.
3. Price Sensitivity: If buyers are highly price-sensitive and prioritize cost
savings, they can demand lower prices and better terms from suppliers. Online
shoppers often compare prices and seek discounts, making Amazon and
Flipkart more influential in negotiations with suppliers who want to maintain
their products on these platforms.
Flipkart.