ComTech is a diversified, multi-profile company

ComTech is a diversified, multi-profile company. Essentially, it is a conglomerate company consisting
of three diverse strategic units acting as independent businesses under separate brands in different
industry sectors: Unit Alpha, Unit Beta and Unit Gamma. ComTech is governed from the central head
office, which oversights the three subsidiary business units and their financial performance
indicators, though without any operational interventions. Each strategic business unit has its own
managing director with full discretion and responsibility over its competitive strategy, investment
priorities, budget allocation and ensuing yearly profits.
Unit Alpha is in the food manufacturing business. The unit produces and distributes a variety of
goods including, but not limited to, vegetables, groceries, meat and dairy products. Each of these
product lines requires unique production processes, storage arrangements, transportation
approaches and underlying equipment and is organizationally implemented by a separate
specialized product department. However, these products are delivered largely to the same circle of
customers, including both major retailers and local food shops. All product lines are also served by a
number of common unit-wide functions, e.g. HR, finance, accounting, logistics, legal, marketing and
sales support.
Unit Beta competes in the restaurant business with 78 IT staff. Specifically, the unit controls a chain
of small fast-food restaurants occupying the low-cost market niche. In total, the chain includes more
than 80 restaurants located in different geographies and more restaurants are planned to be opened
in the foreseeable future. All restaurants offer same interiors, menus, prices, meals and services to
their customers and imply standardized policies, working procedures and supporting equipment.
However, each restaurant is run separately by a chief manager responsible for its overall financial
well-being and all necessary business processes, e.g. recruiting, training, procurement, cooking,
servicing, cleaning and complaints management. With the exception of Unit Beta’s lean central
office, where chain-wide branding, marketing and other strategic decisions are made, the
restaurants operate independently from each other and even have their own profit and loss
statements.
Finally, Unit Gamma runs a chain of resort hotels. These hotels gravitate towards the high-end price
segment and offer premium-quality services to their customers. Unit Gamma’s competitive strategy
implies improving its brand recognition and achieving consistent customer experience. For this
purpose, the unit’s leadership plans to standardize all customer-facing and, to a lesser extent, backoffice processes across all hotels of the chain as well as all its suppliers and service providers.
Moreover, Unit Gamma also intends to become “closer” to its customers and build lifelong customer
relationships. This strategy requires collecting more information about customers, their individual
preferences and transaction histories, aggregating this information globally and leveraging it for
providing customized services, launching loyalty programs, developing special offers and promoting
personalized discounts.
As an EA manager at Comtech, you are required to write a report that discusses the following:

  1. Describe five major roles that STANDARD as EA Artifacts will play in SmartT.
  2. Discuss how solution designs as an EA Artifacts should be implemented in Unit Gamma
  3. What are the four responsibilities of architecture functions in SmartT?
  4. Based on IT staff ratio model and degree of decentralization as a factor, name and discuss
    architects positions that would be required in Unit Beta

Full Answer Section

   
  • Protecting intellectual property: ComTech needs to protect its intellectual property from being stolen by its competitors. This can be difficult, as the SBUs may not be aware of the risks or may not be taking the necessary precautions.
  • Managing risk: ComTech needs to manage the risks associated with operating in multiple industries. This can be difficult, as the risks may be different for each SBU.

Opportunities

ComTech also faces a number of opportunities as a conglomerate company. These opportunities include:

  • Economies of scale: ComTech can achieve economies of scale by sharing resources and services across its SBUs. This can lead to lower costs and increased profits.
  • Market diversification: ComTech can diversify its markets by selling its products and services to a wider range of customers. This can reduce its risk if one market declines.
  • Innovation: ComTech can share ideas and best practices between its SBUs. This can lead to new products, services, and processes.
  • Global reach: ComTech can expand its global reach by leveraging the resources and capabilities of its SBUs. This can lead to new opportunities in new markets.
  • Brand recognition: ComTech can build brand recognition by leveraging the brands of its SBUs. This can make it more attractive to customers and investors.

Recommendations

To address the challenges and opportunities facing ComTech, I recommend the following:

  • Create a corporate strategy that aligns the goals of the SBUs. This will help to ensure that the SBUs are working together towards the same goals.
  • Establish a common set of processes and procedures across the SBUs. This will help to improve coordination and efficiency.
  • Invest in IT systems that support collaboration and knowledge sharing. This will help the SBUs to share resources and best practices.
  • Create a culture of innovation and risk-taking. This will encourage the SBUs to develop new products, services, and processes.
  • Invest in marketing and branding. This will help to build brand recognition and attract new customers.

I believe that these recommendations will help ComTech to overcome the challenges it faces and capitalize on the opportunities available to it.

In addition to the above, I would also recommend that ComTech:

  • Strengthen its corporate governance practices. This includes establishing clear lines of responsibility and accountability, and ensuring that the interests of all stakeholders are taken into account.
  • Invest in talent development. This includes providing training and development opportunities for employees at all levels, so that they have the skills and knowledge they need to succeed.
  • Adopt a sustainability mindset. This means taking steps to reduce the environmental impact of its operations and to promote social responsibility.

Sample Answer

   

Challenges

ComTech faces a number of challenges as a conglomerate company. These challenges include:

  • Managing diversity: ComTech's three strategic business units (SBUs) are very different from each other in terms of their products, markets, and operations. This diversity can make it difficult to manage the company effectively.
  • Ensuring coordination: ComTech needs to ensure that its SBUs are coordinated and working together towards the same goals. This can be difficult, as each SBU has its own management team and its own priorities.
  • Sharing resources: ComTech needs to find ways to share resources between its SBUs. This can be challenging, as each SBU may be reluctant to give up its resources