The crux of all questions is to understand the dynamics of the support activities

in the value chain that affect the primary activities mentioned below especially
sales. The primary activities are:
1.
2.
3.
4.
5.

Inbound Logistics - involve activities related to receive, store, and use raw materials. E.g.
relationships with suppliers of plastic, dyes, molds,joints etc.
Operations - are all the activities required to transform inputs into outputs (products and
services).
Outbound Logistics - include all the activities required to collect, store, and distribute the
finished products.
Marketing and Sales activities to inform buyers about products and services, induce
buyers to purchase them, and facilitate their purchase.
After sales Service activities - includes all the activities required to keep the product or
service working effectively for the buyer after it is sold and delivered.

The below questions should answer: to what extent the decision making process
effect the value proposed to the customer and then help us identify the gaps in
internal support activities and decision making processes that can be
addressed in order to achieve better margins.
1)

Procurement: (This supports inbound logistics)

What data is Polycon using to take decisions on procurement of raw material? What
verification process are decisions subjected to?
Outbound logistics: How is forecasting being done? Who are the suppliers and what
relationship does polycon have with the suppliers?
2)

Technology: machine, methods and technical knowledge that

support operations:

What equipment, processes and intellectual capital does Polycon use to compete in
the industry? How technologically advanced/regressed are these support functions
compared to competitor in terms of reducing cost? How flexible are the operations
to incorporate new products? How much resources (time, money) does the
operations and workforce require to launch a new product?
3) Governance Infrastructure - What internal controls are in
place?
Names of Ownership members with their percentages of ownership? What is the
formal role description of each major board member in internal management? Is
there an overlap?
Is there a meeting of the board quarterly or annually? Are there any minutes taken?
Is there a formal committee present for:
1. Internal Audit

2. Nomination of the board

3. Designing of compensation (especially of the executive members of the
board)
How is the succession planning or recruitment planning done? Is there a Family
constitution devised to address informal recruitments?
4) Human Resource Management: activities involving hiring, developing,
compensating and laying off personnel.

What is the Organization Structure? How much are different departments/functions

involved into each others decision making?
What composes the workforce structure i.e. what is management and nonmanagement ratio of workforce? Who are the internal management people i.e. What
is family management professionals to non-family professional management ratio?
What is the compensation scheme designed for all? How is the workforce and
managers incentivized to achieve sales and reduce cost?

How often does the hiring process acquire the appropriate resource? How
appropriate are those resources in terms of their skills, experience and education?
How much time does the recruitment process take?
How often do people join from competitor companies and how often do we lose out
our resource to the competitors? How do they retain important professionals?
What is the general employee Turnover ratio?
Apart from support activities, some general questions regarding customer
segmentation and financial decision making is also required:
Customer: What is the ratio of Institutional to individual customers? Which of them
contributes more to sales? What after-sales services are provided to retain
customers?
Finance Questions:
Capital structure of Polycon? How much of the total finance is debt and how much is
your own capital?
What is the growth target benchmarked against?e.g WACC? Inflation? Etc
Who is the external auditor and financial controller? What are their credentials?
What is the average financial requirement to bring a new product e.g. opportunity
cost and capital investment?

Summary: We need to Identify the loopholes and strengths in the above

mentioned and make their checklist. Further identify any other data
required to the identify loopholes and strengths and then forward to the
client.