CASE#1

Part A:

1. Describe and evaluate what Pfizer is doing with its Pfizer works.

Ans: The Pfizer will complete successfully and will attract and satisfy its customers in
order to achieve its goals. Pfizer organizational units helping them focused on
organizational goal. As a global pharmaceutical company, Pfizer is continually looking
for ways to help employees be more efficient and effective. The average Pfizer employee
was spending 20 percent to 40 percent of his or her time on support work (creating
documents, typing notes, doing research, manipulating data, scheduling meetings) and
only 60 percent to 80 percent on knowledge work like strategy, innovation, networking,
collaborating, critical thinking. the renamed

Pfizer Works allows employees to shift tedious and time-consuming tasks with the click
of a single button on their computer desktop. They describe what they need on an online
form, which is then sent to one of two Indian service-outsourcing firms. When a request
is received, a team member in India calls the Pfizer employee to clarify what’s needed
and by when. The team member then e-mails back a cost specification for the requested
work. If the Pfizer employee decides to proceed, the costs involved are charged to the
employee’s department. The number 66,500 illustrates just how beneficial PfizerWorks
has been for the company. That’s the number of work hours estimated to have been saved
by employees who’ve used PfizerWorks. E-business strategy allows the company to
have cost leadership which means online activities. In this process bidding, order process,
inventory controls etc. are done through online. It also brings a differentiation; it means
the employees can have both knowledge on internet-based system and on online ordering
and customer support. It even brings focus on chat rooms and discussion boards. Pfizer
uses its magic button with its Pfizer works which allows employees to shift tedious and
time-consuming tasks by clicking a single button on their computer desktop. They
describe what they need on an online form which is sent to one of their Indian
outsourcing firms. When a request is received, Pfizer employee is being clarified about
what is needed and by when. The team member then emails back a cost specification for
the requested work. The whole work is based on computer and online. This is the strategy
of E-Business that is done by Pfizer by its Pfizer works.

2. What structural implications-good and bad—does this approach have? (think in terms
of 6 organizational design elements)

Ans: The Pfizer Designed their organization structurally. Divide work to be done into
specific jobs and department. Assigned task and responsibilities associated with
individual jobs. Pfizer complete their work by specialization. They divided into separated
jobs. Then they divided their work y departmentalise and do the work by chain of
command. They have large employee. So the work distribution are not so cinchonized
like pan of control assuming pan of four. I think the company is not centralized and not
even decentralized also. Because their environment is stable and also their lower level is
 capable and experienced. Lower level have no say in company decision. The upper give
the lower level the order and the lower level follow that. The company also formalized
I think Pfizer has a good structural approach as they are implementing work
specialization. The degree to which tasks in the organization are divided into separate
jobs with each step completed by a different person. Pfizer assigns the employees of
Pfizer works to do the job of “busy” works so that they can pay less in labour cost. But
over specialization can cause human diseconomies from boredom, fatigue, stress etc.
which is surely a bad approach.

PART B :

3. Do you think this arrangement would work for other types of organizations? Why or
why not? What type of organizations might it also work for?

Ans: This arrangement can only work for this sort of firms. Firms applying these
strategies that are being applied by Pfizer can work through this arrangement.
Outsourcing is quite popular in health industries. So, this type of work will not work on
all types of organization as there are certain hierarchy that must be followed to apply this
kind of strategy. A company having the similar organizational goal can make it work for.
 4. What role do you think organizational structure plays in an organization’s efficiency
and effectiveness?

Ans: An organizational structure is the outline stating certain activities that are directed in
order to achieve the goals of the organization. The structure of an organization entails the
division of labour, comprising roles, accountability. I think the organizational structure
plays vital role in the efficiency and effectiveness of an organization. It contains the full
blue print of the firm’s strategies and the ways by which it should be lead toward its goal
and to achieve it.

CASE#2

PART A:

1. How is Costco’s business model different from other retailers such as Walmart and
Sam’s Club? Why do you think Costco’s strategy works?

Ans: Costco’s business model is different from other retailers in terms of bargaining
power of buyers, bargaining power of suppliers and current rivalry. Costco avoids selling
various numbers of brands and chooses to stick with limited ones. As they purchase
products in large volumes of some limited brands only, they are allowed to bargain with
the suppliers for discount, the other retailers doesn’t get this sort of benefit as they sell
several brands in their shop. The discounts Costco get, helps them to save for their profit
savings and by this, they can minimize their selling price and take it to only 15% of the
purchase price. So that they can gain the customer’s satisfaction. Costco’s strategy works
because they mark up their cost price and sales price in such a way that they can gain
profit and customers are also satisfied with a limited bargaining power as they are offered
the lowest price possible.

2. Beyond lower turnover, how else does Costco benefit from treating its employees
well?

Ans: Treating employees in a well manner allows the firm to get good response from the
consumers. Employees are the internal factor of an organization. If the employees get
benefited from the firm and they are behaved well then they can also behave well with the
customers. The firm never can sell a product itself, it needs the employees. Customers
interact with employees and they convince the customers so that their attention is drawled
towards the product. So if customers are mistreated they won’t be attentive towards their
work. And employees know the secrets of the firm even if it is a little bit, mistreating
them can lead to disloyal whereas treating them well can benefit the firm raising some
good and loyal employees.
PART B:

3. Are you surprised that Costco sells cars? How does offering diverse products help
company attract new members?

Ans: Selling cars rather than sticking to retail business reflects unrelated diversification. It
means the retailing firm combines it with a different product to diversify the risk. Costco
is known as a retailing firm and it sales limited branded products only. But boredom hits
the consumers when they get the same product simultaneously. So it is better to sell
diversified products. Also when a famous retail firm like Costco will have any sort of new
offering to its members, the members will surely be attracted towards the new product.
Because they purchase products according to the taste of consumers.

4. Costco now has a comprehensive website and sells online. Is this a threat to Costco’s
business model? Is there a downside to selling online?

Ans: Having an online platform known as e-business is a good source to sell products
from a reputational retailer shop like Costco can be a good way of boosting up the sales
volume. It won’t be a threat for Costco as it has its reputation for its products. But there
are some drawbacks of e-business. The cost of e-business is not that less. And there they
need separate employees which can increase their costs not only sales. Sometimes the
products that are portrayed online fails to draw the customer’s attention.

BONUS:

 Would you knowingly buy counterfeit goods? Explain.

Ans: In the leading world, there’s a race of representation. That is self representation,
people nowadays don’t even drop any way to represent themselves in a better way
whether they can afford or not. I would never buy counterfeit goods knowingly. A
branded product has some costs related to it and so for this reason they are way too
priced. If they’re counterfeited and sold in the market, no one would like to buy the
original ones as the counterfeited ones look exact same but different in terms of quality.
So the brands that produce the original ones will incur huge loss. Also the counterfeited
items are not legally acceptable and for this, buying an illegal item is similar to engaging
myself to that illegal work.