GOKUL KRISHNAN B

IMB20180912
STRATEGIC MANAGEMENT
ASSIGNMENT
Q Rationalize on developing reasonable measurement criteria for measuring advertising results?
Not caring about the effectiveness advertising is considered as wasting money. The efficiency can be
measured best on the internet & offline advertisement can be measured.
The aim of advertising is either increase in sales or building brand. There is a great level of differences in
the effectiveness of various forms of advertising. If we pay for advertising, then it is probably important for
you see some results. But wasting money on inefficient advertising, may lead to missing better opportunities
and results may not be as desired.
Basic element of measuring advertisement effectiveness
The main aim of measurement is to determine the effect of each advertising campaign from the results of
our measuring and comparing it with price put on it then we can decide which campaigns bring the best
value for the money spent.
Various factors are influenced like the medium, ad copy, the format, audience (is the ad well aimed to
the people who use our products?) All of this affect success of the campaign Therefore, it is necessary
to judge the effectiveness in context.

Medium

Audience effective advertising Ad

descision copy

Format

Examples of possible criteria are:

 Customers tell how they learned about the product
 Increase in sales of the promoted goods
 Specific codes applied by customers to receive offered discount
 Redeemed coupons or vouchers that were given out at a campaign
 Increased visits on our website
 Submitted contact forms
 No of contacts made through mail or phone calls.
 ASSIGNMENT 2
For any corporation of your interest evaluate the scope of using Porters model in the initial
assessment and getting useful insights of the organization?
Levi Strauss & Co: Adoption of screened Chemistry program: PORTERS VALUE CHAIN ANALYSIS
About Levi Strauss & Co.
Pioneering American apparel maker Levi Strauss & Co. has jeans in its genes. A global manufacturer of
brand-name clothing, Levi Strauss sells jeans and sportswear under the Levi's, Dockers, Signature by Levi
Strauss, and Denizen labels in more than 110 countries. It markets men's and women's underwear and
loungewear. The company distributes its brand products through more than 695 company-operated stores
located in over 30 countries, and through the third-party and first-party online stores. Levi Strauss makes
more than 75% of its revenue from Levi's branded men's pants. The company went public (again) in early
2019, although the Haas family (descendants of founder Levi Strauss) still controls it
Porters value chain analysis
Porter’s Value Chain is a prominent strategic management tool that Levis Screened can use to disaggregate
Levis Screened strategic activities and organize them in a way that can deliver the firm competitive
advantage and innovation & sustainability in its industry through either higher prices or through lower
costs.
Value Chain Analysis of Levi Strauss & Co

Key Steps in Porter's Value Chain Analysis

 Start by laying out the industry value chain

  Compare firm in Levi Strauss & Co.: Driving Adoption of Green Chemistry case study value
chain to the industry’s value chain
 Zero in on price drivers, those activities that have a high current or potential impact on
differentiation
 Zero in on cost drivers, paying special attention to activities that represent a large or growing
percentage of costs
Primary and secondary activities in Levis Strauss
As illustrated in the Value Chain diagram, Levis Strauss Screened has five generic categories of primary
activities –
INBOUND LOGISTICS
These activities of Levis Strauss Screened are associated with receiving, storing and disseminating the
inputs of the products. It can include material handling, warehousing of physical products, as well as
architecture to receive and store customer information for digital media company. Levis Strauss Screened
at present has outsourced most of its inbound logistics activities.
OPERATIONS
Activities that help the organization to transform raw material into finished products. For the purpose of
this article the definition is broad – it can mean using customer data to serve advertisements based on usage
behavior to clients, moulding plastic to make products etc.
OUTBOUND LOGISTICS
Levis Strauss screened under takes these activities to distribute the finished products to channel partners
and final buyers. Outbound logistics activities include – warehousing, wholesalers and retailers order
fulfillment, scheduling, distribution network, and processing.
MARKETING AND SALES
These activities are undertaken by Levis Strauss Screened to create means through which the buyer can buy
a firm’s products. These activities include – advertising and promotion, marketing, channel selection,
pricing, sales force management etc.
SERVICES
Levis Strauss Screened needs to provide after sales services and maintenance for successful usage of the
product. Service activities of Levis Strauss Screened can include – product forward and backend alignment
of software, part supply, installation services, post sales maintenance, and training.
Support Activities in Levis Strauss Screened Value Chain
As the name explains, Support Activities of Levis Strauss Screened are the one that supports the firm’s
Primary Activities. Porter divided the Support Activities into four broad categories and each category of
support activities is divisible into a number of distinct value activities that are specific to the industry in
which Levis Strauss Screened operates. The four generic support activities are –
FIRM INFRASTRUCTURE
Firm infrastructure support activities at Levis Strauss Screened consists activities such as – finance and
accounting, planning, general management, quality management and legal services.
Firm infrastructure activities at Levis Strauss Screened supports entire value chain though the scope varies
given that Levis Strauss Screened is a diversified company even within the industry. For example the
finance and planning at Levis Strauss Screened are managed at corporate level while quality management,
accounting and legal issues are managed at business unit level.
HUMAN RESOURCES MANAGEMENT
In an environment where each organization is striving to become a learning organization, Human Resources
Management is key to the success of any organization. HRM support activities include – Recruiting,
Selection, Training & Development, Skill Assessment, Hiring, People Planning and Compensation at both
business unit level and corporate level.
Human resource management affects competitive advantage in any firm, but in some industries it is defining
factor. For example in the consulting companies HR is the main source of competitive advantage.
TECHNOLOGY DEVELOPMENT
Technology supports almost all activities in modern day organization. In the technology industry,
technology development has become a source of competitive advantage. Technology development at Levis
Strauss Screened may include activities such as - field-testing, component design, feature design,
technology selection, and process engineering.
PROCUREMENT ACTIVITIES AT LEVIS STRAUSS SCREENED
Procurement activities at Levis Strauss Screened include activities that are undertaken to purchase inputs
that are used by their value chain. It doesn’t include purchase inputs themselves. Purchased inputs may
include - raw material, supplies, machinery, laboratory equipment, office equipment, and buildings.
Like all other value chain activities procurement a5t Levis Strauss employs technology for things such as
– procedures, vendor management, information system, and supply chain partner qualification rules and
ongoing performance evaluation.
Metrics and KPIs to Avoid while Analyzing Levi Strauss & Co.: Driving Adoption of Green
Chemistry Value Chain

 Growth or market share is not a very reliable goal as often firms end up pursuing market share at
the cost of profitability. Shareholder value, measured by stock price, is not a good barometer to
analyze value chain. It is preferred by top management but it is only useful in long run rather than
competitive strategy in short to medium terms.
 Growth in sales is not a good goal for value chain analysis as every managers know that boosting
sales is easy to do by reducing the prices dramatically.