Current Topics in Decision Making

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LA#2: Current topics in Decision Making/ Value Chain and Structuring Problems / This will be done as a pair or as a group of up to three people.

Names__Yiping Ma (Jennifer)__/__Jingyi Niu (Claire)__

Date:___Sep 25th 2012____________________________

PART I : Rona - Rona eyes ‘renewal’ of chain after Lowe’s pulls takeover bid

According to an article in the National Post:
“MONTREAL — U.S.-based Lowe’s may not have ended its cross-border courtship for Rona Inc. despite abandoning its $1.8-billion bid for the Canadian home improvement chain, industry experts believe.

Quebec-based Rona said Monday it only learned through a news release that its U.S. suitor had withdrawn its unsolicited, non-binding acquisition proposal, adding that it continues to concentrate on its own efforts to rejuvenate the company.

“Our focus is on the implementation of our business plan based on the renewal of our offer to consumers. This focus remains,” spokeswoman Valerie Lamarre said in an email.

In addition to improving the shopping experience, Rona wants to improve its financial

1. In the table below, I have listed up the value chain, primary and secondary activities of RONA After each Value chain activities, articulate at least one DECISION PROBLEM (in proper proactive format) that the director of that particular value chain function is/(could be) facing as Rona endeavors to “renew/improve the shopping experience and improve its financial results‘I have written as an example for the secondary activities (Infrastructure) to get you going.

|Value Chain Activities |Decision Problem (write a realistic decision problem for each Value Chain | | |Activities. Define it properly. | |Primary Activities | |1. Retail Store Management/Merchandising |How to compete with Home Depot if Rona closes or shrinks the size of 20 more big | | |box stores outside Quebec? | |2. Procurement | | |3. Marketing |Lowe’s would be better to improve its performance in the U.S. market from 5 years | | |but they how to improved market in Canada? | |Customer Service & support |How to attract more consumers when a slowing Canadian housing market and outlook | | |for sluggish consumer spending? | |5. Warehousing & Distribution | | |Secondary Activities | |1. IT and Info-Management | | |2. HRM | | |3. Finance and Admin | | |4. Infrastructure |Eg. What physical assets (warehousing and stores) can be sold or divestures | | |undertaken to increase the companies cash base, and ROI |

2. Do some research on the Rona / LOWE takeover plan in the National Post, Global and Mail, or...
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