Q1.

Define organizational Learning Theory and explain any four main activities carried out by
learning organizations? (5 Marks)

Answer:

Organizational learning is important for all businesses, because the advent, retention and transfer of know-how
within the corporation will reinforce the organization as a whole.

The definition of organizational learning, three main actions is considered which are mentioned below:
 Conceive
 Act
 Reflect

Organizational learning theory

The concept of organizational gaining knowledge of specializes in the advent of know-how and using that expertise
within an organization.

Key components of organizational gaining knowledge of principle are that mastering takes place while people have
interaction whilst locating and fixing issues.

Organizational gaining knowledge of idea stresses the significance of developing a mastering culture inside a
business enterprise.

1. Systematic problem solving

This first hobby rests heavily at the philosophy and techniques of the great motion. Its underlying thoughts, now
broadly widespread, include:

 Relying on the medical method, in place of guesswork, for diagnosing issues (what Deming calls the “Plan,
Do, Check, Act” cycle, and others consult with as “hypothesis-producing, hypothesis-testing” techniques).
 Insisting on facts, instead of assumptions, as background for decision making (what nice practitioners call
“fact-based totally management”).
 Using simple statistical gear (histograms, Pareto charts, and correlations, reason-and-impact diagrams) to
organize information and draw inferences.

2. Experimentation
This hobby entails the systematic looking for and trying out of new knowledge. Using the scientific approach is
important, and there are apparent parallels to systematic hassle solving. But not like problem solving,
experimentation is generally prompted via opportunity and increasing horizons, no longer by means of cutting-edge
difficulties. It takes fundamental paperwork: ongoing applications and one-of-a-type demonstration tasks.

3. Learning from past experience

Companies should evaluate their successes and screw ups, determine them systematically, and file the classes in a
shape that personnel locate open and on hand. One expert has known as this process the “Santayana Review,”
bringing up the well-known philosopher George Santayana, who coined the phrase “Those who can't recollect the
past are condemned to repeat it.” Unfortunately, too many managers nowadays are indifferent, even opposed, to the
beyond, and by means of failing to reflect on it, they allow treasured expertise escape.
4. Learning from others
Of direction, now not all mastering comes from reflection and self-evaluation. Sometimes the maximum powerful
insights come from searching outside one’s immediate surroundings to advantage a brand new angle. Enlightened
managers realize that even businesses in completely special corporations can be fertile assets of ideas and catalysts
for creative questioning. At those companies, enthusiastic borrowing is replacing the “now not invented right here”
syndrome. Milliken calls the procedure SIS, for “Steal Ideas Shamelessly”; the broader time period for it is
benchmarking.

Q2. In environmental scanning, a corporation must assess the importance of forces driving
the industry competition within the industry. Explain with an example?

Organizational surroundings include both external and internal factors. Environment must be scanned so that it will
determine development and forecasts of things with a purpose to have an impact on organizational achievement.
Environmental scanning refers to possession and utilization of information approximately occasions, patterns,
tendencies, and relationships inside an corporation’s internal and outside environment. It enables the managers to
determine the future course of the employer. Scanning ought to identify the threats and possibilities existing within
the surroundings. While method formula, a business enterprise have to take advantage of the possibilities and
minimize the threats. A danger for one corporation can be an opportunity for another.

Competitive Rivalry

This appears at the variety and electricity of your competition. How many competitors do you have got? Who are
they, and the way does the first-class of their products and services evaluate with yours?

Where rivalry is intense, groups can attract clients with competitive charge cuts and high-effect advertising and
marketing campaigns. Also, in markets with plenty of rivals, your providers and buyers can move someplace else if
they feel that they're now not getting a good deal from you.

On the alternative hand, in which competitive contention is minimum, and no one else is doing what you do, then
you may probably have wonderful energy and wholesome earnings.

Supplier Power

This is determined by using how smooth it's miles in your suppliers to boom their charges. How many ability
suppliers do you have had? How precise is the products or services that they provide, and how steeply-priced would
it be to switch from one provider to some other?

The greater you need to pick from, the less difficult it will likely be to interchange to a cheaper alternative. But the
fewer suppliers there are, and the extra you need their help, the stronger their position and their ability to price you
more. That can impact your profit.
Buyer Power

Here, you ask yourself how clean it is for consumers to power your charges down. How many customers are there,
and how massive are their orders? How plenty would it not value them to switch out of your products and services to
the ones of a rival? Are your customers sturdy enough to dictate terms to you?

When you deal with just a few savvy customers, they've extra strength, but your power increases if you have many
customers.

Threat of Substitution

This refers back to the likelihood of your clients finding a unique way of doing what you do. For instance, in case
you supply a completely unique software product that automates an important manner, people may additionally
substitute it by way of doing the procedure manually or with the aid of outsourcing it. A substitution that is simple
and reasonably-priced to make can weaken your function and threaten your profitability.

Threat of New Entry

Your role may be affected by humans’ ability to go into your market. So, reflect on consideration on how easily this
will be executed. How smooth is it to get a foothold to your enterprise or marketplace? How a whole lot would it
fee, and the way tightly is your quarter regulated?

If it takes little money and effort to go into your marketplace and compete correctly, or when you have little
protection for your key technologies, then opponents can speedy enter your market and weaken your position. If
you've got robust and durable barriers to entry, then you may keep a good position and take truthful gain of it.

Q3. What is a Corporation’s Value Chain? Explain the same with example? (5 Marks)

Components of a Value Chain

In his concept of a value chain, Porter splits a business's activities into two categories,

 Primary

 Supportive

Primary Activities

1. Inbound logistics: Functions like receiving, warehousing, and managing inventory.

2. Operations: Procedures for converting raw materials into a finished product.
3. Outbound logistics: Activities to distribute a final product to a consumer.
4. Marketing and sales: Strategies to enhance visibility and target appropriate customers—such as advertising,
promotion, and pricing.
5. Service: Programs to maintain products and enhance the consumer experience—like customer service,
maintenance, repair, refund, and exchange.

Support Activities

1. Procurement: How a company obtains raw materials.

 2. Technological development: Used at a firm's research and development (R&D) stage—like designing and
developing manufacturing techniques, and automating processes.
3. Human resources (HR) management: Hiring and retaining employees who will fulfill the firm's business
strategy; and help design, market, and sell the product.
4. Infrastructure: Company systems; and composition of its management team—such as planning, accounting,
finance, and quality control.

Trader Joe's (Private)

Another example is Trader Joe's grocery store, which also has received much press about its tremendous value and
competitive edge. Because the company is privately held, however, there are many aspects of its strategy that we
don't know.

1. Inbound logistics: Unlike traditional supermarkets, Trader Joe's does all of its receiving, shelving, and
inventory-taking during regular store hours. Although potentially maddening for shoppers, this system creates a ton
of cost savings in terms of employee wages alone. Moreover, the logistics of having this work take place while
customers are still shopping sends the strategic message that "we're all in this together."

2. Operations: Here's an example of how a company could apply the value chain creatively. In primary activity
number two above, "converting raw materials into finished product" is cited as an "operations" activity. However,
because converting raw materials is not an aspect of the supermarket industry, we can use operations to mean any
other regular grocery store function. So, let's substitute "product development," as that operation is critical for
Trader Joe's.

The company selects its products carefully, featuring items that you generally can't find elsewhere. Its private-
label products account for at least 70 percent of its offerings, which often have the highest profit margins, too, as
Trader Joe's can source them efficiently in volume. Another vital piece of product development for Trader Joe's is its
taste-testing and chef-partnership programs, which ensure high quality and continuous product refinement.

3. Outbound logistics: Many supermarkets offer home delivery, but Trader Joe's does not. Yet here, we can
apply the activity of outbound logistics to mean the range of amenities that shoppers encounter once they are inside
a Trader Joe's store. The company has thought carefully about the kind of experience it wants us to have when we
visit its stores.

Among Trader Joe's' many tactical logistics are its in-store tastings. Usually, there are a few product tastings
happening simultaneously, which create a lively atmosphere, and often coincide with the seasons and holidays. The
tasting stations feature both new and familiar items that are prepared and served by staff.

4. Marketing and sales: Compared to its competitors, Trader Joe's barely does any traditional marketing.
However, its entire in-store experience is a form of marketing. The company's copywriters craft product labels to
appeal specifically to its customer base. Trader Joe's' unique branding and innovative culture indicate that the
company knows its customers well—which it should, as the firm has actually chosen the type of customers it prefers
and has not deviated from that model.

Via this indirect marketing of style and image, Trader Joe's has succeeded in differentiating itself in the marketplace,
thus sharpening its competitive edge.

5. Service: Customer service is paramount for Trader Joe's. Generally, you see twice as many employees as
shoppers in their stores. Whatever work they are doing at the moment, the friendly, knowledgeable, and articulate
staff is there primarily for you. Employees welcome shoppers' interruptions and will instantly rush to find your item
or answer your question. In addition, the company has always employed a no-questions-asked refund program. You
don't like it, you get your money back—period.