Organizational Planning And Control
Group Progress Report
Please read the following and let me know if you want to change anything:
Please also upload all your parts to the doc. Once this is done, I will post the Progress Report on iLearn:
1. The initiative your group suggested to support the growth strategy
Our group has decided to diversify Foleo Group by establishing an additional business unit – ‘Foleo Fablets’. This unit will specialise in the production, manufacturing and distribution of electronic tablets.
After undertaking thorough research on real-life companies’ that have successfully developed a tablet branch within their business, we have decided to further investigate the company Apple. Apple manufactures and distributes the most popular tablet in the technology market, the iPad. Researching this company’s strategic business plan and diversification strategy will support our group’s proposal for Foleo Fablets.
All team members have contributed towards the body of the group report . A first draft of the following sections have been written up:
Evidence of Viability
Impact on Stakeholders
We have also created a title page and table of contents for the final submission of the report. As a team, we still need to complete the following work:
Write up the executive summary, introduction and conclusion/ recommendations
Edit the first draft by fixing spelling, grammar and punctuation errors
Adjust references to align with correct Harvard referencing style
Format the structure of the report to meet the assessment criteria
Overall, we have completed approx. 70% of the group report requirements.
We have had two group Zoom meetings. All group members attended both meetings. The two meetings were held on the following dates:
We intend to have an additional 3-5 more meetings until the submission date of the report.
All members have equally contributed to the first draft of the report. Each member was elected to complete one component of the body of the report and all members have uploaded their first drafts onto a shared Google doc.
Proposed Initiative – Jingyan
SWOT Analysis – Talia
Strategic Alignment – Yujia
Evidence of Viability – Albert
Impact on Stakeholders – Nicole
Please have a draft by Wednesday 22nd September
Exec Summary – Yujia
Intro – Jingyan
Conc – Nicky
Editing/Formatting/Table of contents etc – Talia
To further improve the competitive advantage of Foleo, our initiative is to expand a new business— ”Fablet ”, which is the line of tablet computers (iPad – Wikipedia 2021). This electronic device is prepared for people who are on a business trip frequently, so they need a computer not only portable but also functional. The SliFone‘s multi-touch interface is brought to a much larger display screen, to allow it to work more like a laptop, which is expected to be Fablet‘s signature achievement (Fingas 2018).
All Fablets connect using Wi-Fi, so the users can work or study as long as there is an internet connection. Simultaneously, Fablets have a variety of functions associated with shooting a video, playing music, taking photos, etc. Other functions like games, GPS navigation as well as social networking enable it to be downloaded from Foleo Scapps (iPad – Wikipedia 2021).
Foleo that aims to explore and develop a core capacity to become more thriving will be given an edge over other competitors if the company adopts related diversification as a strategy of growth (Hamel & Prahalad 2002). According to Edwards (2021), when a company develops a new industry has similar businesses with the company’s existing business lines, which can be defined as related diversification.
Hence, Foleo utilizes the strategy and exploits a new business line that allows the company to charge a better price than if the company operates this business separately. Combined under one brand, the Fablet may be more valuable by integrating well with other productions.
For instance, Fablet and SliFone can operate better than if they are produced and offered by separate companies (The benefits of related diversification 2021). More specifically, the establishment of Fablet will only experience a positive effect on other existing Foleo businesses, such as SliFone and Foleo Scapps. As Fablet engages in sharing the existing resources with SliFone and drives the utilization of Foleo Scapps. As such, customers likewise may prefer to purchase supporting products and buy from a company that they trust (The benefits of related diversification 2021).
Fablet is expected to utilize criteria to select suppliers and Supply Chain Management (SCM) to manage suppliers. Supplier selection criteria are associated with price, quality, delivery, performance history, capacity, communications systems, geographical location, and so on. Fablet can list all supplier selection criteria to score, and finally select the supplier with the highest score as Fablet’s supplier (Langfield-Smith et al. 2018).
Table 1.2 suggests that how to score suppliers. SCM is a process that organizes and integrates different business activities. SCM has been recognized as an increasingly important procedure in the current global business world and Fablet needs to have strong relationships with the suppliers for achieving successful coordination by using SCM (Jha et al. 2013).
Fablet initiates marketing schemes, where additional 10% discounts are provided to students. Therefore, creating an incentive for users to choose Fablet over its competitors. Additionally, Fablet will launch physical stores in Australia and also expand to other countries in the future, while providing shipping services almost all over the world.
Table 1.1 displays the shipping policy in Fablet, which shows the shipping policy details of major partner cities. However, Australia Post has canceled the package collection service due to the COVID-19 so customers can only purchase products from physical stores (Shipping & Delivery | Lovisa Jewellery Australia 2021).
Edwards, J., 2021. Diversification Strategies. [online] Ecampusontario.pressbooks.pub. Available at: <https://ecampusontario.pressbooks.pub/strategicmanagement/chapter/diversification-strategies/#footnote-273-2> [Accessed 18 September 2021].
En.wikipedia.org. 2021. iPad – Wikipedia. [online] Available at: <https://en.wikipedia.org/wiki/IPad#History> [Accessed 19 September 2021].
Fingas, R., 2018. A brief history of the iPad, Apple’s once and future tablet | AppleInsider. [online] AppleInsider. Available at: <https://appleinsider.com/articles/18/04/03/a-brief-history-of-the-ipad-apples-once-and-future-tablet> [Accessed 17 September 2021].
Hamel, G. & Prahalad, C.K., 1990. The core competence of the corporation. Harvard business review, 86(1), pp.79-91.
Jha, G.K., Chatterjee, P., Chatterjee, R. & Chakraborty, S. 2013, “Suppliers Selection In Manufacturing Environment Using Range Of Value Method”, i-Manager’s Journal on Mechanical Engineering, vol. 3, no. 3, pp. 15-22.
Langfield-Smith, K., Thorne, H. & Hilton, R., 2018. Management accounting. McGraw-Hill.
Lovisa. 2021. Shipping and Delivery | Lovisa Jewellery Australia. [online] Available at: <https://www.lovisa.com.au/pages/shipping-delivery> [Accessed 19 September 2021].
Startup Sloth. 2021. The benefits of related diversification. [online] Available at: <https://startupsloth.com/the-benefits-of-related-diversification/> [Accessed 18 September 2021].
(Table 1.1 has something wrong with the format when I copy it from my document, so I only can upload screenshots. But if the original looks better, I can send it by email Lol)
|Supplier A||Supplier B||Supplier C|
The following section will outline the ways in which the introduction of Fablets will likely affect customers, suppliers, competitors, employees and shareholders.
Fablet’s target demographic is a well-educated customer that likely will find practical use of the device for business or educational purposes. It is important to note that tablets are not only used for educational purposes, but are also very commonly used recreationally, for gaming, viewing videos and listening to music (Chan-Olmsted & Shay 2016).
The portability of a tablet offers the convenience of laptop functions anywhere at any time, which is found to be a highly desirable attribute for the customer (Li & Leung 2014).
Just as Foleo Fones created phones that were catered specifically with the interests of Australians in mind, the Fablet would also be customized to suit the specific needs of Australian consumers, unlike US-based competitors (Huberty et al 2011 p.4).
The introduction of the Fablet would boost motivation for Scapps to produce more applications that are catered to the dimensions and software of the Fablet. This would also push the need for flexibility of the applications’ practical use across platforms.
With the introduction of the Fablet to Foleo’s product line, Foleo group would be able to utilize many existing supplier relationships to negotiate better contracts with inputs that are common across both Foleo Fones and Fablets such as displays, memory chips, batteries, and touchscreens (Kraemer et al. 2011).
By pursuing larger quantity lock in contracts with both suppliers and distributors, Foleo group would have the ability to negotiate larger quantities of orders for a discounted price, increasing economies of scale (Burrows & Satariano 2011). With the introduction of Fablets, Foleo group would need to consider the source of their operating system and the source of their applications (apps).
Foleo group could tap into the software or operating system of Android to bypass the process of reviewing and integrating existing apps in the market. Android’s status as the best-selling smartphone operating system platform that offers an extensive collection of apps that have been programmed to work well within the Android operating system (Alliance 2013) can be very attractive to Foleo group. However, this move could revert Foleo group back into an unfavourable contract wherein they are locked into providing monthly sales reports and substantial licensing fees to Google.
The market for tablets has many competitors such as the Apple iPad, Samsung Galaxy Tablet, the Blackberry Playbook, and the Motorola Xoom (Lennon & Gillard 2012). Whilst the Apple iPad was not the first tablet on the market, it was the first to impact the market with considerable success due to their unique combination of software and hardware (Griffey 2012 p.7) and an organic ease of use (Lennon & Gillard 2012).
Whilst Samsung’s operating system became the market leader in 2012, Apple is the leading tablet vendor (Statista 2021b) and had 31% of the global market share in the second quarter of 2021 (Statista 2021b). The Fablet can approach the market with the goal of reaching the average Australian and catering to the unique needs of the Australian market in the same way that they did for Foleo Fones. The introduction of a tablet to the Foleo line would broaden the range of competitors and competing products that influence Foleo group’s bottom line and competitive positioning in the tech market.
The introduction of a the Fablet would require Foleo group to invest into employee training programs. The training should provide best practices in selling tablets, answering general FAQs regarding the tablet and after sales care to solve any questions or concerns the customer may have. Also, The focus on these areas of customer service have proven to be successful within Apple storefronts and implemented via intense training and mentoring by the experienced staff until they are deemed ready for one-on-one customer interactions (Kane & Sherr 2011).
Foleo group would introduce different sales goals that incorporate an addition to the product line. Market research would be required to determine the demand within each store’s specific region for Fablets. Additionally, Foleo group would be required to consider the most organic roll out of the Fablet to stores across both Australia and New Zealand that accommodates the delay related to employee training.
The introduction of tablets would not negatively impact the sales of Foleo Fones’ existing products. This is because whilst not all phone users own tablets, almost all tablet users own phones (Chan-Olmsted & Shay 2016). From the perspective of consumers, tablets are not perceived as an alternative to smartphones, but are rather additive, complimentary platforms (Chan-Olmsted & Shay 2016). By adding another product into Foleo group’s line, profits will be diversified, attract new customers and would consequently increase shareholder value.
Alliance, O.H., 2013. Android (operating system). Marketing, 4(5).
Chan-Olmsted, S. and Shay, R., 2016. Understanding tablet consumers: Exploring the factors that affect tablet and dual mobile device ownership. Journalism & Mass Communication Quarterly, 93(4), pp.857-883.
Griffey, J., 2012. The rise of the tablet. Library Technology Reports, 48(3), pp.7-13.
Huberty, K., Lipacis, C.M., Holt, A., Gelblum, E., Devitt, S., Swinburne, B., Meunier, C.F., Han, K., Wang, F.A., Lu, J. and Chen, G., 2011. Tablet Demand and Disruption. Tablet.
Huimin, M and Hernandez, J.A 2011, Price skimming on a successful marketing strategy: study of iPad launching as Apple’s innovative product. In Proceedings of the 8th International Conference on Innovation & Management (pp. 389-393). Japan.
Kraemer, K.L., Linden, G. and Dedrick, J., 2011. Capturing value in global networks: Apple’s iPad and iPhone. Research supported by grants from the Alfred P. Sloan Foundation and the US National Science Foundation (CISE/IIS).
Lennon, M.M. and Girard, T., 2012. iPadagogy: Enhancing business education with the iPad. In Hawaii International Conference on Business, Honolulu, HI May (pp. 24-27).
Li, K.X. and Leung, L., 2014. Impacts of iPad attributes, users’ lifestyles, and media dependency on the adoption and intensity of iPad usage. International Journal of Cyber Behavior, Psychology and Learning (IJCBPL), 4(1), pp.28-45.
Satariano, A. and Burrows, P., 2011. Apple’s supply-chain secret? Hoard lasers. Bloomberg Businessweek, 4, pp.50-54
Statista 2021a, iPad – Statistics & Facts. [online] Statista. Available at: https://www.statista.com/topics/877/ipad/ [Accessed 21 Sep. 2021].
Statista 2021b, Tablet shipments market share by vendor worldwide from 2nd quarter 2011 to 2nd quarter 2021. [online] Statista. Available at: https://www.statista.com/statistics/276635/market-share-held-by-tablet-vendors/ [Accessed 21 Sep. 2021].
Business unit structure
Large supply of resources
Australian-based (less shipping time etc) location
Intellectual property of Foleo Fones etc
Integrity within workplace (From James & Higher staff ROI)
Business model – chasing profits
– Expand business with another unit (Fablets)
– Media expansion
Negative media coverage
Changing customer attitudes towards company
The success of Foleo Group Limited can be attributed to the strength of five key aspects of the organisation. These strengths include the overall structure of the organisation, the large supply of resources, the dedicated staff, the location of the company and the intellectual property of Foleo Group. To properly understand the merit of these strengths, an analysis of each of the five strengths is necessary.
For a business to be successful, it is imperative that there is a competent organisational structure in place. One of the key strengths of Foleo Group Limited is that they have a highly efficient, organised business structure. The company runs a Foleo Group Head Office that oversees the progress of departments including finance, marketing, human resources, research and development and information technology.
These departments all offer their support services to the following five business units: ‘Foleo Fones’, ‘Foleo Accessories’, ‘Foleo Retailing NZ’, ‘Foleo Scapps’ and ‘Foleo Skills’ (REF WK 6). Within each of these business units, a structural hierarchy is set up to ensure all staff personnel report to a supervisor. This organisational structure enables the business to progress on a micro scale in terms of individual unit production, while also ensuring the success of the business on a macro scale, allowing for future business expansion with additional business units.
The following report has outlined the proposed initiative of adding Fablet, a tablet to Foleo group’s product line using Apple’s iPad as a comparative case study. This report outlined the ways in which Fablets will affect Foleo group’s stakeholders and ways in which the company should integrate this new product to support employees and yield the best financial results. A SWOT analysis was conducted to provide an indication of the company’s overall situation by analyzing both internal and external environments.