1. Final Integrative Assignment
Welcome to the culminating exercise for the course. In this assignment, you will be asked to draw upon your
understanding of both business strategy & financial acumen in order to consider how you can best help your
customer.
Question 1:
Considering all the opportunities and threats coming from customers, suppliers, competitors,
substitutes and new entries, what is the single most important opportunity or threat your customer
has to address?
In your answer please provide 4-5 justification statements for why this opportunity or threat is most
critical for your customer’s goals.
A current threat for Contoso is the consumer spending is dropping for luxurious goods what is driven by
low-cost imports (global trade & manufacturing) and competition of and mass online merchandisers such
as Amazon, Wehkamp and Bol.com.
These new players in the market are expanded product offerings and integrated merchandising without
debts like real state and personnel costs, which are high at Beter Bed. This major chain expansion will take
over 100% company’s as Beter Bed. A recent example is one of their big competitors Macintosh Retail
Group how filed for bankruptcy.
1) Online merchandisers have lower operating costs, with lower selling costs, more online traffic what
generates more cross-sell opportunity’s and higher profit margin.
2) There are possibilities of multi-channel retailing (omni-channel) & leveraging internet capabilities
for Beter Bed by selling their products true these new players and only providing experience centers
to capture more value.
3) Due to their major manufacturing chain and their differentiation strategy they cannot compete
with these new players and the current environment is shifting giving the consumer more
purchasing power. Investments will be needed to make to retain their market share.
Question 2:
What strategy is your customer deploying to address that issue?
Address the role IT plays in your strategy analysis.

2. Two months ago the new CEO of Contoso approached me to address their changing environment and
leveraging ICT capabilities within their business process. There current strategy is to partner up with new
online entries, consolidate their A-locations and reinvent their Image. They offer true a differentiation
strategy what targets designs to improve the quality, customer satisfaction and safety of their products.
Two retail formulas focus on low-cost aftermarket matrasses but isn't their main focus.
By expanding their current value chain with online merchandisers partnerships allows them to retain
market share. Due to their current position as market leader they have a superior inhouse production chain,
R&D, trustworthy image and best sourcing price due to centrally buying of their materials. With this they
can capture more value. IT plays a big role and CRM gives them better insight, collaboration and overview
of these partnerships. It also provides multi-channel retailing (omni-channel approach) so they can keep up
with the competition.
In my analysis it showed that cash is tied up in the value chain for 98 days and that intangible operating
assets grew with 40% from last. With ERP a better productivity can be obtained and bigger ROI.
Question 3:
Can you recommend at least one or more Microsoft solutions or products that offer a comprehensive
approach to help IT execute on the strategy? Address how the use of cloud services can accelerate
deployment of applications in your response.
Contoso is rethinking their their current business model and consolidating local shops by closing some and
maximizing customer visits at others. As current market leader they need tools to leverage internet
capabilities with online merchandiser partnerships, better insight and productivity & multi-channel
approach to generate more cross/up- selling and revenue.
My analysis showed that cash is tied up in the value chain for 98 days and that intangible operating assets
grew with 40% from last year. Also their sales generated from operations dropped to 5,5 % from 6,25 % last
year which indicates that it is more difficult for Contoso to turn their products into profits.
1) Microsoft CRM gives better insight, collaboration and overview of these partnerships, allowing a
omni-channel approach and seamless integration with fieldserivce for recycling and after service
what complements their differentiation strategy.
2) Microsoft AX allows better inventory management system reduces inventory holding period and
utilization of operating costs. It will enhance productivity in the value chain and working capital
tied up value chain. By connecting their POS transactions in store to their e-commerce sites for
better inventory tracking but also with potential new partners. It generates more cash flow that
can be used, positive influence future cash flow and higher ROI.
The Microsoft cloud solution will help to faster deploy the CRM & ERP solution across the value chain and
channels. It also provides a pay-as-you go and less investment of Contoso.
Question 4:
Explain how your recommended solution affects your customer’s future ROI and cash flow.
You do not need to quantify the effects; rather, you should describe the key components of ROI that
are affected, and then explain how these effects link to cash flow. Once you’ve described the effect on
ROI and cash flow, explain the implications of these effects for NPV, IRR or payback (Please choose
only one decision tool that your customer prefers to answer this part of the question).

3. Using the cloud solution of Microsoft increases NOPAT, OFCF and revenue. Side-affect could be a longer
payment of sale true third-party retails online what effects OFCF.
By closing down several local stores the inventory can be reduced and with that COGS. Depreciation of real
state will affect selling & general admin expenses but increase in distribution costs and capital spending.
Because understanding solution is cloud based there is no big capital expense required. It also has a low-
risk of not succeeding what our solution will positive improve NPV.
With Microsoft Dynamics
1)closing and maximizing the number of top location stores will reduce real state (depreciation on
building/working capital) and wages costs (operating costs). Driving cost structure down and impacting
ROI.
2)Due to an extra sales channel more revenue will be generated and positively impact ROI which increases
overall productivity (Driver ROI) compared to other cost structures.
Question 5:
Can the application of cloud services increase the Microsoft value proposition to your customer even
more?
When implementing Microsoft Dynamics CRM, it takes a few months for the company to adopt. The
systems will get automatic push updates allowing the customer to spend less on IT personnel and on
premise equipment.
The deployment of the solution is quick to realize over the 1200 Contoso’s locations and no big investment
will be needed which affects capital expense. They also don't need to put it on their asset side of the
balance sheet (in comparison with on premise) which enhances their ROI.
The maintenance and security is provisioned by Microsoft letting the customer focus on their primary
business processes.
Question 6:
What other non-financial benefits would your recommended solution bring to your customer? e.g.
satisfy security requirements, perceived by end customer as tech savvy, etc.

4. The solution of Dynamics CRM with social engagement and FieldOne lets the organization operate more
customer centric which improves satisfaction. Contoso consolidates current stores, only letting one’s open
that are profitable. With this solution they can provide an experience in the stores and use their online
website for the bulk of their delivery.
Because the frequency of product replacement is 8 years the solution provides more engagement with the
customer and top of mind awareness. This by better insight in customer buying cycle and sentiment in the
market. During product delivery the solution provides better planning and pickup for recycling.
Question 7:
How will you differentiate your value proposition in your strategy analysis to the customer from any
potential similar offer from your competitors?
Microsoft is the only services provider how can offer a Hybrid application structure; with the application on
Azure cloud or on premise. It offers CRM/ERP and BI on the same infrastructure and together with
Office365 and Outlook it is a very powerful platform where the products enhance each other. This give a
freedom of choice.
It also offers a lease contract in the form of ESA what allows down and upscaling possibilities in its
infrastructure during a year period, giving the flexibility they need. In this way they can expense the
solution not having to capitalize on this. It also makes the adoption of the solution faster in a pay-as-you-go
model and shorter payback period.