Please read this scenario prior to answering the question
ArchiCar has been a market leader in the premium priced luxury car sector for the last decade. Its product leadership strategy has brought superior products to market, and enabled ArchiCar to achieve premium prices for its cars. This strategy has
been widely successful in the past, but recently competitors have been offering comparable products and taking significant market share. The governing board of ArchiCar has identified opportunities in emerging markets where the ArchiCar brand
is associated with luxury and high performance products, but is thought to be too expensive for mass-market success. Based on this assessment, the board has made the decision to setup a subsidiary company to mass-produce affordable cars
locally. This will be achieved by focusing on a strategy of operational excellence. Such a strategy is ideal for such markets where customers value cost over other factors.
To facilitate this strategic transformation, the project has been divided into multiple phases within a five-year program. The initial phase, known as "Achieving Operational Excellence," is underway. The engineering team has begun devising an
action plan to drive the necessary changes and outlining the technological conditions that must be met. The product architect has identified three current capabilities - industry-leading engineering, high-quality materials sourcing, and cutting-edge
focussed R&D - along with their contributions to the new production philosophy.
Moving forward, it has been determined that two out of the three current capabilities require revision. Materials sourcing needs to be adjusted to meet optimization demands, and R&D targets must align with future goals to enable affordable
production. Additionally, process engineering is introduced as a fourth capability to shift the company's focus from products to a process-oriented approach.
The Enterprise Architecture team has been tasked with migration planning, and identifying key work packages and deliverables. They have identified two transition states between the current and future scenario. The first transition aims to adjust
current capabilities, including revising the R&D approach and procurement strategy. The second transition aims to shift from a product-centric mindset to a process-focused approach and adjust materials sourcing accordingly. It is important to
consider existing supplier contracts that cannot be immediately canceled during this process.
The Enterprise Architecture team has identified that the second transition must implement a process framework, in order to shift to a process focus and meet a number of requirements, including the requirement for end-to-end process thinking. As
this requirement impacts procurement processes, it also impacts the procurement strategy.
Refer to the Scenario
You have been asked to model parts of the overall scenario, including migration planning, the motivations driving the migration, and the work packages necessary to achieve the desired deliverables.
Which of the following answers best describes the scenario?
A.
B.
C.
D.
