Strategy Question Yamato Transport

Due Monday January 26th, 2015 @17:00

Question #1

Strategy Question – Yamato Transport

Part 1 (75%)

Critically analyse Yamato Transport Co., Ltd.'s internal resources and capabilities for Japan using a detailed Barney VRIO framework. Discuss the main competitive implications for your analysis.

Part 2 (25%)

Make one S.M.A.R.T. recommendation, supported with information from your Part 1 analysis, on how Yamato can best grow its profits in Japan.

Notes:

Please stay within the timeframe of the case.

You may use outside references, provided they are properly cited.

Supplemental information from your analyses may be included in an appendix, though it will not be marked. In other words, use your word count wisely in the paper.

Clearly state any major assumptions made in preparing your answers.

Do not use analyses from other subject areas in your answers here. Answer it from a strategic management perspective looking at the overall areas of consideration and their linkages to each other.

Question #2

Human Resources Question – Yamato Transport

As the new Head of Corporate HR for Yamato Transport Co., Ltd., you are walking into a company situation that is based on longstanding values, specifically, the strong company precepts, strong 'Yamato Mottos', and the corporate Gemba structure. It is these solid foundations that have been built up over time that have led to much of the success of the organization within the Japanese market.

With external expansion beyond Japanese borders, the system has struggled, and you are dealing with significant turnover in some areas, which is a significant drag on productivity and overall profits.

Presently, you are tasked to analyze the turnover/retention issue abroad and put together a framework for making major improvements in this area.

Given what you know about Yamato as presented in the case, develop the framework, ensuring you clearly detail the rationale for your directions in your overview. While you need not present the intricate details of the plan, please consider it from development through to implementation to ensure its success, with as much detail as possible within your 1,000 word limit.

For this response, you should start with a paragraph on the extent of the issues, then build into your framework. For this report, you may use directed point form, as you might present as a high level executive summary to the company President and Board.

Question #3

Finance Question – Yamato Transport

Successful firms develop a unique strategy that must be successfully implemented to bring about the desired success. Embedded in that strategy are critical success factors: things the firm must do well in order to successfully implement the strategy. Firms will often use the balanced scorecard, often referred to as a strategic performance measurement system, to measure their progress and success in performing those things that are critical to their success.

Part 1 (30%)

List what you feel are Yamato Transport Co. Ltd.’s critical success factors. Using the case information and Exhibit 2, analyze the areas of financial performance where Yamato has performed well and areas where they have performed poorly. How do the areas of financial performance you analyzed relate to Yamato’s critical success factors?

Part 2 (10%)

Several of the key profitability ratios in Exhibit 2 dropped off significantly for 2012. Did Yamato’s operating performance drop significantly in 2012? Explain.

Part 3 (50%)

Prepare a strategy map and balanced scorecard for Yamato’s domestic operations. Your strategy map should clearly show the specific cause-and-effect relationships among the objectives within the balanced scorecard’s four perspectives. Your balanced scorecard should contain at least two specific performance measures or key performance indicators for each objective. In analyzing performance, what would you conclude if performance targets for each performance measure are being met, but financial performance is falling well below expectations?

Part 4 (10%)

How could Yamato use the balanced scorecard to address the issues and challenges of overseas expansion?

Organise your answer according to the four parts of the question. Use point form/bullet points and tables where appropriate.

Question #4

Marketing Question – Yamato Transport

Part 1 (50%)

One of Yamato Transport Co., Ltd.'s growth initiatives (see pp. 9-10 of the case) is the desire to increase its market share by expanding into global markets. Based on its documented mixed success with its regional expansions into Taiwan, Singapore, Shanghai, Hong Kong, and Malaysia, consider that one of the countries under consideration for extended global expansion is India.

Using the information in the case on the blend of service offerings in Japan and the regional expansion markets currently being served, and any AU library or online sources that you may wish to consult on opportunities in India, please develop a tentative market entry strategy for India based on the construction of a SWOT analysis. To provide some limits to the SWOT, you should concentrate your intended entry strategy to India’s major urban areas only and evaluate the strengths, weaknesses, opportunities, and threats related to both B2B and B2C potential target markets.

Part 2 (50%)

A major evolutionary development observed both in the marketing literature and in marketing practice over the past two decades has been a marked movement away from the traditional transaction-oriented product dominant logic (PDL) toward adoption of a service dominant logic (SDL) strategy, where a stakeholder orientation has become central, with the focus on customer co-creation and co-production.

In this context, prepare a brief overview of the specific marketing practices that Yamato has adopted to date for its Japanese and regional markets in its movement toward becoming a model company that is strongly committed to a services orientation, with resulting “win-win” outcomes for the company and its stakeholders. Specifically consider the suppliers, employees, and other stakeholders, in addition to its customers, in your presentation and suggest further specific steps that Yamato can take in growing its business domestically and globally by reinforcing its desire to honour the company precepts (Exhibit 9, p. 16).

Notes:

Please note that responses must be based on information available from the case study and any other good quality secondary sources (including the AU Library and online sources) that you access and acknowledge in addition to your own original contributions.

Please be explicit and original in your responses to these two questions, and under no circumstances should you “cut and paste” from any other Comprehensive Examination response.

Use a narrative style rather than bullets for areas requiring elaboration. This is especially important for the generation and presentation of the SWOT elements in Part 1.

Please answer these questions in the order presented, and clearly separate and identify your two responses.

Please note that it is not sufficient to simply cite the Kotler or other AU MBA course textbooks without involving them in proper, in-depth, case-specific analysis. If you wish to use external marketing references in support of your responses, you are encouraged to do so.

Question #5

Operations Question – Yamato Transport

Parts 1 and 2 of this question require you to make comparisons between the following:

The Miharabashi Center in Tokyo (p. 4)

The Nakamachidai Center in Yokohama (pp. 4-6)

The Onoue Center in Kumamoto (p. 6).

Part 1 (40%)

Draw a process map of the delivery process for each of the three centers as set out on the pages identified above. Note any assumptions you have made. In less than 150 words, set out the main similarities and differences between the processes you have mapped.

Part 2 (30%)

Focussing on operational aspects only, conduct a SWOT (strengths, weaknesses, opportunities, and threats) analysis for each of the three centers. Compare and contrast the three SWOT analyses.

Part 3 (15%)

Page 8 of the case asks 'How could various improvement ideas be implemented effectively to ensure early delivery?' Imagine you have been asked you to use the Case Method you used in Operations Management (OPMT-505) to provide recommendations for improvements. Identify five objectives (key result areas) against which you would be able to evaluate any recommendations you made.

Part 4 (15%)

Suggest three analytical tools or techniques associated with operations management that could be used to identify opportunities for improvement or generate recommendations. (Process mapping and SWOT are not acceptable suggestions because they have already been used within this question.) For each technique state why you have selected it and what you would expect it to deliver. Do note you are not required to actually undertake analysis using these tools or techniques.

Question #6

Managerial Economics and Quantitative Analysis Question – Yamato Transport

Makoto Kigawa just received a report from an IT consultant on two forms of a project to improve services for Yamato Transport Co., Ltd. Both projects are designed to enhance scheduling of the company’s delivery services. The first is the development of a centralized computer scheduling and delivery process and the second is a more decentralized series of computer programs with a server in each geographical area where Yamato is expanding, as outlined in the case. The consultant has identified the value of each of the two alternatives by describing each as a profit center within the organization. The IT consultant estimates the centralized computer system will require an investment ¥10 million for the centralized system and ¥12.5 million for the decentralized group of computers and software. Mr. Kigawa has asked you to use the skills you have learned in your Managerial Economics and Quantitative Analysis course to recommend which approach would be best as the company moves into the future. The data provided in the spreadsheet are only applicable to the MEQA section of the exam.

Part 1 (40%)

Only a conceptual outline is expected in each question of Part 1.

Although you don’t have the specifics of the two proposed IT systems for scheduling, what are the types of issues that you believe are important for the Yamato managers to consider as they review the risk and profitability of the proposed approaches to upgrade the scheduling of delivery services by the company? (20%)

Review the data provided to Yamato managers in Part B below and describe the processes you believe are appropriate to help them decide which of the two systems would be the most appropriate for the company to implement. Again, it is important to recognize that the data are only applicable to the MEQA section of the exam. (20%)

Part 2 (60%)

Calculate the expected profits for 2014 for the two alternatives using the data provided by the consultants. Provide a narrative evaluation of those results, including the techniques appropriate for these purposes. Consider the factors relevant to making a final decision that Mr. Kigawa should consider and make your recommendations as to which proposal would be the best. Explain your reasons for making that recommendation. (45%)

Are there other factors that you believe Yamato managers should consider as they finalize their decision regarding this approach for improving these operational activities? (15%)

Use the attached Excel spreadsheet for your analysis in Part 2.

Yamato Transport Co., Ltd.
Profit Center Estimates (¥ million)
Centralized / Decentralized
Profit C / Profit D
¥ million / Prob (p) / ¥ million / Prob (p)
155 / 0.1 / -140 / 0.2
1250 / 0.15 / 1540 / 0.15
1875 / 0.25 / 1850 / 0.15
2690 / 0.25 / 3050 / 0.25
3050 / 0.25 / 3850 / 0.25
Yamato Transport Co, LTD
Profit Center Estimates (¥ million)
Centralized / Decentralized
Profit C ¥ million / Prob (p) / Profit D ¥ million / Prob (p)
155 / 0.1 / -140 / 0.2
1250 / 0.15 / 1540 / 0.15
1875 / 0.25 / 1850 / 0.15
2690 / 0.25 / 3050 / 0.25
3050 / 0.25 / 3850 / 0.25