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Transcription of this question: 5.In the months after receiving the K&J report, Alejandra struggled with her decision over whichoption to choose. The report had been highly scientific and gave her three strategic options.However, she intuitively felt that the strategic analysis had some problems. The K&J report wasbased on the assumptions that her next steps should be to extend her product life cycle, and thather main objective should be growth: growth of her brand, growth of her business and growth ofher profits. She wondered if these assumptions were still appropriate.She had recently read M Scott Peck’s The Road Less Traveled, which made her think about herlife (Item 1). She was experiencing a personal crisis. Ever since she began modelling in Miami,her career had gone from success to success, but she now asked herself: “Have I ever reallythought about my goals in life(a)(b)(c)(d)Identify any two factors, other than technology, that caused LadyA’sobjectives to change.Using information from Item 2, calculate the predicted outcomes x and y ofstrategic Options 1 and 2 (show a/’ your working).Explain any one of Porter’s five forces that have had an impact on LadyA.Examine two driving and two restraining forces that have influenced changesat LadyA Management Limited (I-AM)Using your answers to part (b), information contained in the case study andItems 1 to 3, discuss LadyA’s three strategic options now that Alejandra ishaving a baby.[2][12]Item 1: Extract from M Scott Peck, The Road Less Traveled (1978)”To proceed very far through the desert, you must be willing to meet existential suffering and work itthrough. In order to do this, the attitude toward pain has to change. This happens when we accept thefact that everythin that happens to us has been desi ned for our spiritual rowth.”To:From:LadyAAfter reviewing all three options and considering that you are having a baby, we believe all threeoptions remain feasible. In each case the fact that you will soon be a mother may add value.However, you must consider the following issues:Option 1 : This would require either that your baby travels with you, or that you are prepared forextended periods of time when you and your baby will be apart, while you work in South America.Option 2: You could delegate far more to the Managing Director who would manage the developmentof a global market and the new distribution channels. You may have less time for the regular meetingswith the Managing Director or to keep such a close interest in all the decisions.Option 3: This would require your willingness to include your baby as part of your media profile. Inmany ways, this option suits the fact that you are having a baby. Becoming a mother may strengthenyour attempts to re-brand yourself. However, from the beginning, K&J has considered re-branding asthe riskiest option.We predict that the chances of success and potential profits from the three options are as follows(figures are given in millions of S):Option 1:Chance of success: 90%Cost: $10mOption 2:Chance of success.• 75%cost: $25mOption 3:Chance of success: 50%Cost: $5mIf successful$10m per year forfive years$40m per year forfive yearsZero profits for threeyears, $15m in year4 and $20m in year 5If unsuccessful$0.5m per year for fiveyears—$10m per year for fiveyearsZero profits for threeyears, $2m per year inyear 4 and year 5Predicted outcomex$14.5m(Additional information continued)Item 3: Extract adapted from USA Today, 12 December 2013 on Martha Stewart Living OmnimediaMartha Stewart Living Omnimedia, the media company that owns the Martha Stewart Living magazineand other digital and television ventures branded with the founder’s name, will make about 100employees redundant next Thursday, according to the New York Post.The number of jobs eliminated amounts to about a quarter of its workforce, the Post report said. Inits most recent annual report earlier this year, the company said it had about 497 employees as ofFebruary.The downsizing comes about a month after the company named Daniel Dienst as its new ChiefExecutive Officer (CEO). In an October statement announcing his appointment, Stewart, who foundedthe company and serves as non-executive chairman, said Dienst was appointed to the job partly due tohis “strong operating and financial discipline”

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