PLEASE SEE BACKGRUOND NOTES BELOW.  TURNIT IN USED FOR GRADING. 

Module 2 – SLP

Organizational Diagnostic Models

Overview

In SLP2, you will again be provided the numbers to be input for each of four decision points. For purposes of SLP2, pricing will be more conservative (lower) than the pricing strategy reflected in the Module 1 SLP.

Assignment

Run the simulation, entering the following numbers at each of the four major decision points:

1) Decision 1: For Years 2008-2012

a) Pricing – Manual

b) Module Price – $0.13

c) Revenue to Process Improvement – 5%

d) Years to Advance – 5 years

2) Decision 2: For Years 2013-2017

a) Pricing – Manual

b) Module Price – $0.11

c) Revenue to Process Improvement – 5%

d) Years to Advance – 5 years

3) Decision 3: For Years 2018-2022

a) Pricing – Manual

b) Module Price – $0.09

c) Revenue to Process Improvement – 5%

d) Years to Advance – 5 years

4) Decision 4: For Years 2023-2025

a) Pricing – Manual

b) Module Price – $0.08

c) Revenue to Process Improvement – 5%

d) Years to Advance – To end

NOTE: Do not change the numbers displayed in the “Settings” tab!

At each of the four (4) decision points above, you are required to analyze the impact of your Module Price on market share and total profits. You are also required to determine how process improvements yield a reduction in unit costs. Be sure to copy tables and charts to support your analysis. You may need t use Excel to edit the charts and tables. However, do not use figures and tables as “space fillers” – use these only to support your analysis.

Keys to the Assignment

The key aspects of this assignment that should be covered and taken into account in preparing your 5-6 page paper include:

1. Include discussion and analysis of key metrics at the end of each decision point (e.g., among other data, be sure to include total market share, revenue, cumulative profit, consumer net price, modular price, unit cost, etc.). As an MBA, it is your job to identify cause and effect!
2. For each decision point, be sure to include comparative tables that include what you believe to be the most important data. Don’t merely recite the data, however – instead, analyze the data! As an MBA, what does it tell you?
3. Make recommendations. What would you have done differently as it relates to pricing, process improvement, or other?
4. Compare and contrast the pricing decisions made in SLP1 and SLP2. Give key metrics that demonstrate how the different pricing decisions have affected market share, cost to the customer, cost of goods sold, revenue, profits, etc., etc.

Be sure that you retain all SLP2 notes, tables, and figures, as you will be comparing the results of SLP2 with those of SLP3 in the next module.

**** NOTE: The 5-6 page requirement includes written analysis and all supporting tables, figures, and graphics. However, it does not include Cover or Reference page. Be sure to adhere to the TUI Writing Guide for formatting of all papers. If you are unsure how to complete a financial analysis, please review the following sample report:

Gilbert O’Neil Mushure. (2014). Financial analysis report: Malaysia airlines 2007 – 2011. International Journal of Sciences : Basic and Applied Research, 14 (2), 148-153.

Also refer to the following source on business writing:

O’Hara, C. (2014, November 20). How to improve your business writing. Harvard Business Review. Retrieved from https://hbr.org/2014/11/how-to-improve-your-business-writing?utm_campaign=Socialflow&utm_source=Socialflow&utm_medium=Tweet

SLP Assignment Expectations

Your paper will be evaluated based on the Rubric.

      Please note the following tips and suggestions:

• Include a cover page and reference page, in addition to the 5-6 pages of analysis described above.
• Include headings for all papers greater than two pages (basically all papers), but do not use headings as “space fillers.”
• Cite and reference all sources that you use in your work, including those that you paraphrase. This means include citations and quotation marks for direct quotes of more than five words, and citations for that information which you have “borrowed” or paraphrased from other sources.

      Hints for success!

Throughout this SLP, you will be asked to make business decisions under conditions of incomplete information and uncertainty. To do so, you will need to make assumptions based on what you have learned throughout the MBA program about how markets operate. Thus, your strategies in approaching this decision need to rely on models, financial analysis, and theories from such classes as Economics, Finance, Accounting, Marketing, Strategy, and Quantitative Analysis. In addition, the simulation will give you some additional market information as you progress.

Be sure to explicitly draw on concepts and theories from the courses you have taken throughout the MBA program. That means you need to “think like an MBA” and use the financial data you are given. You will have to crunch some numbers and present your data analysis professionally by creating some simple tables, charts and graphs.

Module 2 – Background

Organizational Diagnostic Models

Organizational Development (OD) is a fundamental management subject and important for an MBA degree program. One aspect of Organizational Development is Organizational Diagnosis, which is not as comprehensive as the overall development or change process. Diagnosis is often the first step in the OD process. Over the years, there have been many OD models developed. Some are better than others and some are more useful in certain situations than others. Later models were developed with Open System Theory in mind, which tends to make the models more comprehensive. ABC Company and Whole Foods Market are interested in using an OD model to diagnose Whole Foods Market’s current situation. You will need to have an understanding of some of these models in order to make a recommendation.

Required Reading

Download and read this white paper by Falletta about OD models. Salvatore Falletta, President and CEO of Leadersphere, has written a white paper that reviews several commonly used models of organizational diagnosis. You will use several of these models in conducting your integrative Case project. The relevant part of this paper in terms of this class is the first 31 pages. The last part of the paper (pp. 32-43) deals with the theoretical foundations of the Burke & Litwin model, Falletta’s Organizational Intelligence Model; this is optional reading. We are not covering Falletta’s Organizational Intelligence Model.

Falletta, S. V. (2013) Organizational diagnostic models: an integrative review & synthesis. Organizational Intelligence Institute (www.oi-institute.com).

Falletta provides an overview of Open Systems Theory (OST) in his paper (pp. 8 & 9). Keep in mind that OST is not an OD model, but rather a basis for most of the later models. For a deeper understanding, go to the following optional reading and read about systems, systems thinking, and organizations as open systems. You will see that businesses are not unlike living organisms: they depend on the environment for sustenance; they comprise multiple, mutually dependent parts; and they affect the environment in the course of their daily activities. Open Systems Theory provides valuable insights into organizations.

Optional Reading

Systems Thinking and Learning Organizations (n.d.). National Defense University. Retrieved from http://www.au.af.mil/au/awc/awcgate/ndu/strat-ldr-dm/pt1ch4.html

There are no reading assignments for the SLP.

However, if you need a refresher on various theories (product life cycle, pricing, price elasticity, market saturation, product development, etc.) there are a multitude of articles on the Internet.

Optional Review Materials

This small sample of Useful Internet Sites may help you throughout the course, and can serve as a complement to previous course materials. You are encouraged to supplement this list if you need additional refreshers.

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