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Innovation in Business & Entreprise V1

Assignment A
1 If you were in charge of strategic planning for your organization, what changes
would you make?
2 How well does a organization strategically differentiate from the competition in
terms of the capabilities of its product? How clear is the organizations strategy
for this?
3 How efficient and organized is your organizations plan for how to improve and
evolve the strategic objectives over time?
4 How do you get from where you are today to where you want to be in the future?
What are the steps that you will have to take to create your ideal future business?

5 List out the additional knowledge, skills, or resources will you require to
achieve your strategic objectives?
6 Across the potential field available to the organizations, where will the
employers will choose to play and not play?
7 If a person is given oppurtunity to organise a strategic planning for its
organisation. Then evaluate the steps and processes which is required for strategic
planning?
8 Evaluate the different possibilities through which an Indian software companies
can enter the Western-European market through a marketing strategy

Assignment B
Case study
In early 2003, JetBlue Airways (JetBlue), the three-year-old no-frills American
airline, posted a profit of $ 17.6 million for the first quarter of 2003. In the
same period, the American airline industry announced losses of around $2 billion.
JetBlue was one of the few bright spots in an industry which has been reeling under
the woes of over-capacity and losses for over two years.
The company managed to succeed in a period when big names of the American airline
industry like American Airlines, United Airlines, US Airways and others suffered
huge losses and were a few steps from bankruptcy. The American airline industry was
in a bad state owing to the effects of terrorism, war and economic downturn. The
major carriers alone were estimated to have an outstanding debt of over $100
billion, as against a combined stock market value of $13 billion in 2002. Passenger
traffic was also falling consistently. In early 2003, the traffic was 17% lower
than in the same period of 2002 (which was itself 10% lower than the traffic in
early 2001). In this scenario, a number of low cost airlines began to make their
presence felt in the industry.
Southwest Airlines, the highly successful 30-year-old discounter, was the
inspiration for most of the low-cost start-ups. However, not all the start-ups
succeeded. The most important cause for failure was the inability of these low-cost
airlines to bring about a balance between cost-cutting and quality of service.
The most successful exception to this condition was JetBlue. JetBlue, which was
also modelled on the lines of Southwest Airlines, managed to succeed in a depressed
and highly competitive industry, because of its innovative approach to business and
its efforts in becoming a cost leader by cutting down on unnecessary frills and
wasteful expenses. The airline managed to cut costs without compromising on the
quality of service. In fact, it provided more amenities than other airlines,
including personal television sets for every flyer and comfortable leather seats,
creating a feeling of luxury. JetBlue's strategy was to identify and eliminate non-
value adding costs and use the money so saved, to provide service of better
quality.
JetBlue is the brainchild of David Neeleman (Neeleman), the son of a Mormon
missionary, who grew up in Salt Lake City, Utah. Neeleman was a poor student and
dropped out of the University of Utah after his freshman year. After dropping out,
he spent two years in Brazil as a missionary.
Returning to the USA, he took up a career in sales, selling condominiums in Hawaii.
To boost his business, he started his own travel agency by chartering flights to
transport prospective clients to the Hawaiian Islands. Neeleman was a hard-seller
who even tried to push honeymoon packages onto couples during their weddings. His
reputation as a salesman caught the attention of June Morris, who owned one of
Utah's largest travel agencies. Together they started a Utah-based charter
operation in 1984 called Morris Air. Neeleman modelled Morris Air on the lines of
Southwest Airlines (Southwest) run by his idol Herb Kelleher. He took ideas from
Southwest and tried to improve on them. He adopted a strategy of keeping costs low
to increase margins by turning around the planes quickly and having reservationists
work from home to save office rentals.
He also developed the industry's first electronic ticketing system, which was
easier to operate than manual ones and did not cost much. By 1992, Morris Air had
developed into a regular scheduled airline and was poised for an IPO.
Herb Kelleher, impressed with the airline's low cost, high revenues strategy,
offered to take it over. Southwest bought Morris Air for $129 million. Neeleman
gained $22 million from this sale and went to work at Southwest as an executive
vice president. This arrangement, however, did not work out. Neeleman, accustomed
to running his own airline, was unable to adjust to working in a team. Within a
year, he split ways with Southwest. Before he could leave, Kelleher made him sign a
non-compete agreement, which would be valid for five years. Neeleman then moved to
Canada, where he co-founded a discount airline called West Jet. He also fine-tuned
the online reservations system he developed at Morris Air, called it Open Skies and
sold it to Hewlett-Packard in 1999, for a reported $22 million.
JetBlue succeeded because of its cost advantages and no-nonsense approach to
business. The company adopted aggressive cost cutting by doing away with most of
the frills other airlines provided (which only increased their cost and did not
improve customer value) without compromising on quality or comfort.
Said Neeleman, "You can be efficient and effective and deliver a great experience
at the same time." JetBlue's aim was to create a cost structure that would support
low fares, without lowering service standards. The fares charged by JetBlue for a
round trip averaged between $98 to $498, which was more than 50 per cent less than
those charged by the majors in the industry (For instance, a round trip from New
York to Florida cost about $ 500 on the major airlines; JetBlue charged about $ 140
for the same trip with a seven day advance purchase). To support its decision to
become a cost leader, JetBlue adopted a number of innovative measures on its
flights. Jetblue decided not to serve meals on its flights, no matter what the
distance or duration. Neeleman identified food as an area in which major cost
cutting was possible.
JetBlue succeeded where a number of other airlines failed. The primary reason for
this success was that the airline tried to be different. It built its success on
low cost and high standards, which attracted and kept passengers, and at the same
time helped the airline remain solvent in times when the majors were crumbling to
dust.
However, analysts wonder whether this magnitude of success can be sustained for a
longer period. JetBlue's cost leader approach succeeded because the airline was in
its growing stage and could yet exercise close control over the business. There
were no labour problems because the airline was small enough for all the employees
to feel involved and for the management to look after its employees well. Things
cannot be the same forever. With JetBlue growing at a very rapid pace, its real
success would be in replicating the same model successfully on a larger scale. An
important factor in JetBlue's success was that it operated in a niche market, where
it had no competition. It adopted the Southwest model, but did not operate in the
same markets. However, competitors were catching up with JetBlue.

Q.No 1:What are the most common causes for the failure of american airlines?
Q.No 2: Even in crisis condition how the JetBlue airlines able to make out a
solution to improve their business strategy?
Q.No 3: Who developed the airlines first electronic ticketing system and what are
its benefits?

Assignment C

1 A key ingredient of the marketing management process is insightful, ________

marketing strategies and plans that can guide marketing activities.
(A):
creative
(B):
measurable
(C):
macro
(D):
micro

2 According to a chapter story about H&M clothing stores, H&M is able to put
products out quickly and inexpensively by all of the following EXCEPT ________.
(A):
having few middlemen and owning no factories
(B):
buying large volumes
(C):
having extensive experience in the clothing industry
(D):
having total control of its distribution channel from the time the goods are
produced until the time they are sold

3 The task of any business is to deliver ________ at a profit.

(A):
customer needs
(B):
products
(C):
customer value
(D):
products and services

4 In a hypercompetitive economy such as ours, a company can win only by fine-

tuning the value delivery process and choosing, providing, and ________ superior
value.
(A):
communicating
(B):
selecting target markets with
(C):
composing
(D):
developing

5 The traditional view of marketing is that the firm makes something and then
________ it.
(A):
markets
(B):
sells
(C):
distributes
(D):
prices

6 Today, the mass-market is actually splintering into numerous ________, each

with its own wants, perceptions, preferences, and buying criteria.
(A):
micromarkets
(B):
market targets
(C):
macromarkets
(D):
customer clique

7 The first phase of the value creation and delivery sequence is ________ that
represents the homework marketing must do before any product exists.
(A):
choosing the value
(B):
market research
(C):
target marketing
(D):
service consideratio

8 The last step in the value creation and delivery sequence is ________ the value
where the sales force, sales promotion, advertising, and other communication tools
announce and promote the product.
(A):
developing
(B):
developing
(C):
communicating
(D):

9 The Japanese have refined the value delivery process to include a component that
emphasizes ________.
(A):
zero servicing
(B):
zero customer feedback time
(C):
zero promotion
(D):
zero dependency on intermediaries

10 The ________ identifies nine strategically relevant activities that create value
and cost in a specific business.
(A):
value proposition
(B):
value chain
(C):
mission statement
(D):
annual report

11 The ________ in the value chain cover the sequence of bringing materials into
the business (inbound logistics), converting them into final products (operations),
shipping out final products (outbound logistics), marketing them (marketing and
sales), and servicing them (service).
(A):
operations process
(B):
manufacturing process
(C):
primary activities
(D):
secondary activities

12 The firms success depends not only on how well each department performs its
work, but also on how well the various departmental activities are coordinated to
conduct ________.
(A):
core strategies
(B):
satellite businesses
(C):
core values
(D):
core business processes

13 With respect to core business processes, all the activities involved in

gathering market intelligence, disseminating it within the organization, and acting
on the information is referred to as the ________.
(A):
market sensing process
(B):
market research process
(C):
target marketing process
(D):
market pulse process

14 With respect to the core business processes, all the activities involved in
researching, developing, and launching new high-quality offerings quickly and
within budget are referred to as the ________.
(A):
new product process
(B):
new offering realization process
(C):
product development process
(D):
product launch proces

15 With respect to the core business processes, the ________ is considered to be

all the activities involved in defining target markets and prospecting for new
customers.
(A):
customer acquisition process
(B):
customer relationship management process
(C):
fulfillment management process
(D):
customer prospecting process

16 A good way to describe the ________ would be discuss all the activities involved
in building deeper understanding, relationships, and offerings to individual
customers.
(A):
customer acquisition process
(B):
customer relationship management process
(C):
customer prospecting process
(D):
customer fulfillment management process

17 Another way to describe a value delivery network (partnering with specific

suppliers and distributors) is to call it a ________.
(A):
teamwork group
(B):
cabal
(C):
domestic power center
(D):
supply chain

18 The key to utilizing organizational core competencies is to ________ that make

up the essence of the business.
(A):
make the competencies pay for themselves
(B):
own all intermediaries who come in contact with your goods and services
(C):
own and nurture the resources and competencies
(D):
emphasize global promotions

19 Core competencies tend to refer to areas of special technical and production

expertise, where ________ tend to describe excellence in broader business
processes.
(A):
process benchmarks
(B):
distinctive capabilities
(C):
core business values
(D):
value statements

20 One conception of holistic marketing views it as integrating the value

exploration, ________, and value delivery activities with the purpose of building
long-term, mutually satisfying relationships and co-prosperity among key
stakeholders.
(A):
value creation
(B):
value proposition
(C):
value management
(D):
value research

21 ________ can be defined as the determination of the basic long - term goals and
objectives of an enterprise, the adoption of courses of action and the allocation
of resources necessary for carrying out these goals..
(A):
Strategy
(B):
Strategic dimension
(C):
Business level strategy
(D):
None of the above

22 Which strategy will be used by an organisation that is in more than one line of
business?
(A):
Business level strategy
(B):
Contemporary strategy
(C):
Corporate level strategy
(D):
None of the above

23 Which of the following option is a strategic dimension?

(A):
Innovation
(B):
Cost control
(C):
Marketing differentiation
(D):
All of the above

24 Which strategy refers to the scope of the market to which the business caters?
(A):
Breadth strategy
(B):
Cost control
(C):
Innovation
(D):
None of the above

25 When an organisation sets out to be the low cost producer in its industry, it
follows a __________.
(A):
Differentiation strategy
(B):
Focus strategy
(C):
Low cost leadership strategy
(D):
None of the above

26 Which of these is an external strategy of environment?

(A):
Lobbying
(B):
Recruitment
(C):
Rationing
(D):
Buffering

27 _______ entails scrutinizing the environment to identify actions by competitors,

government, unions and the like, that might impinge on the organisation's
operations.
(A):
Buffering
(B):
Boundary spanners
(C):
Environmental scanning
(D):
None of the above

28 People who are operating at the periphery or boundary of the organisation,

performing organisational relevant tasks?
(A):
Recruiter
(B):
Boundary spanners
(C):
Advertiser
(D):
None of the above

29 Which jobs are categorised under boundary spanners?

(A):
Marketing researchers
(B):
Lobbyists
(C):
All of the above
(D):
None of the above

30 ___________ reduces the possibility that the organisation's operations will be

distributed by insuring supplies &/ or absorption of outputs.
(A):
Buffering
(B):
Coopting
(C):
Coalescing
(D):
None of the above

31 Using a _____ strategy, a company or business unit can capture a larger share of
an existing market for current products through market saturation and marketing
penetration, or it can develop new markets for current products.
(A):
product development
(B):
market development
(C):
diversification
(D):
market penetration

32 _____ pricing attempts to hasten market development and offers the pioneer the
opportunity to use the experience curve to gain market share with a low price and
dominate the industry.
(A):
Skim
(B):
Promotional
(C):
Dynamic
(D):
Penetration

33 _____ strategy determines how and where a product or service is to be

manufactured, the level of vertical integration in the production process, the
deployment of physical resources, and relationships with suppliers.
(A):
Operations
(B):
Financial
(C):
Marketing
(D):
Functional

34 Parts grouped into manufacturing families to produce a wide variety of mass-

produced items form the _____ system.
(A):
mass production
(B):
flexible manufacturing
(C):
continuous improvement
(D):
mass customization

35 Using _____, two suppliers are the sole suppliers of two different parts, but
they are also backup suppliers for each other's parts.
(A):
parallel sourcing
(B):
sole sourcing
(C):
multiple sourcing
(D):
outsourcing

36 ____ strategy deals with the flow of products into and out of the manufacturing
process.
(A):
Purchasing
(B):
Logistics
(C):
Manufacturing
(D):
Operations

37 ___ is purchasing from someone else a product or service that had been
previously provided internally.
(A):
Outsourcing
(B):
Multiple
(C):
Sole
(D):
Parallel

38 When competitors involve themselves in rate wars, this strategy to avoid is

known as
(A):
follow the leader.
(B):
arms race.
(C):
hit another home run
(D):
losing hand

39 Pro forma balance sheets and income statements can be generated with _____
software on a personal computer.
(A):
word-processing
(B):
database
(C):
spreadsheet
(D):
financial

40 All of the following are used as criteria in evaluating strategic alternatives

except:
(A):
mutual exclusivity.
(B):
internal consistency
(C):
dialectical inquiry.
(D):
completeness.

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