P_SAPEA_2023 · Question #47
Green Elk & Company is the world's leading manufacturer of agricultural and forestry machinery. The former company slogan "Elk always runs has recently been changed to "Elk feeds the world" One of…
The correct answer is C. How is the value chain transformed? In the context of Green Elk & Company's strategic goal to expand in emerging markets, the most pertinent set of questions to ask the owner of the business unit of finished goods would focus on the transformation of the value chain and the competitive advantages that can be…
Question
Green Elk & Company is the world's leading manufacturer of agricultural and forestry machinery. The former company slogan "Elk always runs has recently been changed to "Elk feeds the world" One of Green Elk's strategic goals is to increase its revenue in the emerging markets of China, India, and other parts of Asia by 80 % within three years. This requires a new business model that caters to significantly smaller farms with limited budgets. You are the Chief Enterprise Architect and the CIO asked you to conduct interviews with the key stakeholders of Green Elk to assess the business strategy. You are planning to interview the owner of the business unit of finished goods. Which of the following sets of questions would you ask?
Exhibit
Options
- AWhich technological concepts are necessary- what kind of technologies are available?
- BWhat are the transformation drivers and what impact will they have on the business model?
- CHow is the value chain transformed?
- DWhich technological concepts are necessary?
How the community answered
(48 responses)- A2% (1)
- B6% (3)
- C90% (43)
- D2% (1)
Explanation
In the context of Green Elk & Company's strategic goal to expand in emerging markets, the most pertinent set of questions to ask the owner of the business unit of finished goods would focus on the transformation of the value chain and the competitive advantages that can be leveraged. Therefore, the best set of questions is represented by option C: How is the value chain transformed? This question aims to understand the changes required in the current value chain to support the new business model targeting smaller farms with limited budgets. It's essential to identify which processes and interactions need to be adapted or redefined to meet the needs of the emerging markets. Which parts of the value chain must be optimized? Optimization efforts should be directed towards the most impactful areas of the value chain that can drive efficiency, reduce costs, and improve service delivery in the context of the new markets. What is the competitive advantage and what are the value potentials that can be realized through the transformation? Understanding the unique strengths of Green Elk & Company and how they can be harnessed to create value in the new business environment is crucial for the success of the expansion strategy. Which business capabilities will be required or need to mature to support future business models? The company must assess its current capabilities and determine which ones need to be developed or enhanced to support the strategic goals effectively. These questions are designed to elicit information that will help in crafting a business strategy that is aligned with the company's vision of feeding the world and achieving significant revenue growth in the targeted emerging markets.
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