Busi chapter 4 & 5

Chapter 4 1) Pixar most closely resembles as an organic structure. I believe that Paxar’s has a wider specialization working environment and it shows low formalization background but trust the employee’s talents in teams. In order to form and effective working environment, Paxar’s tend to open working environment with freedom on employee’s ideas and creativity. Respect to employees, trust them and give them the possibility to communicate directly to the top management. Specialization work background gives the ability work efficiently with great quality. By assigning specialized teams or talented people from multiple capabilities and grant them the decision-making approval in team level effect for a great output and speed for success. 2) The Company had created and produced many feature films. “ Toy Story “ was one of the most successful films. I trust they could accomplish as their organizational structure is suitable for their product. Pixar’s believe in open environment office structure and the dynamic interaction between employees. Paxar’s trust that relaxing office environment is tending to bring more innovative and creative output from the workers. Employees will be happy to work in a joyful environment than in a stressful environment. In Pixar Company, individual's ideas are allowed to display in public therefore and they this is good for Company to collect new innovations and ideas. 3) Pixar’s can be redesigned as a virtual organization by networking with suppliers & distributors. By doing this Pixar’s can get further understanding and information about the customer needs. Also, I believe that they can outsource some of their studio editing work to their own employees with benefits to get a fast development to the market.

Chapter 5

Answer no. 1: In terms of analyzing yoga clothing industry based on Five Factors Model, below factors are considered:

· Potential Entrants: 

The global yoga clothing market is highly growing because people tends to yoga more and more as a therapy for both physical and mental disorders. There are lots of brands and producers for yoga clothes, so a customer can switch to another seller easily. Many producers of athletic clothes can produce yoga clothes by diversification of their products. So, the threat of Potential Entrants is high in this industry.

· Suppliers: 

There are lots of suppliers for raw material which are textile and fabric. So, the threat of bargaining power of Suppliers is low.

· Buyers:

The desire of people to meditate is increasing. Also, yoga pants are gaining popularity. Yoga pants can be utilized for activities such as jogging, dancing, and running, walking. So, the huge number of customers can not be a threat for this industry. Substitutes: Producing yoga clothes can be substituted by related products such as other sport wear. Therefore, manufacturers should consider a strategy that reduces the threat of Potential Entrants. Answer no. 2: The internal environment of Lululemon can be analyzed by VRIO Model. In terms of value, rareness and imitability, we should consider and investigate the idea of its costumers. They say that Lululemon clothing is worth every penny. Lululemon athletic clothing may be expensive, but swear looks good and can stand up to many types of gym-based exercises. While other luxury brands have come after Lululemon, it keeps its loyal fans. In terms of business organization, their strategy is based on promoting an enjoyable lifestyle. Their business has been organized such a way that how clothing feels on a person’s body to achieve perfection. In this way, they installed a science lab to get a product right from fabric to fit. Answer no. 3: In my opinion, Lululemon is employing the Product Differentiation Busses Level. Because they produce high value and imitable products. Also they use reusable bags with inspirational manifests printed on the side, which promote customers and makes them unique.