in the winter/summer semester 20____
O First attempt O 1st repetition O 2nd repetition
(Last name, first name)
Jeston brian pereira
International logistics and supply chain management
Subject/module General Management in Logistics & SCM
Topic Strategic management, Human resource management, Business
Assessment by lecturer
Points Attained / of maximum
Statutory declaration Yes/no
Operation OF INTERNATIONAL LOGISTICS AND SUPPLY CHAIN 2
Table of Contents
Part 1: Strategic Management......................................................................................................... 4
Comprehensive and well-structured Strategic Analysis of the Global Container Shipping
Application of different, adequate analytical concepts and methods based on data collected ... 8
Future Action and Strategic Market Positioning to give to the Board Managers ..................... 10
Conclusion ................................................................................................................................ 13
Part 2: Human Resource Management ......................................................................................... 14
Importance of aligning the HR Strategy with the Corporate Strategy...................................... 14
Importance of talent management in business performance..................................................... 17
Measures to evaluate of war of talents...................................................................................... 18
Human Resource KPIs to control the measures........................................................................ 20
Conclusion ................................................................................................................................ 21
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Part 3: Business Transformation................................................................................................... 23
Current situation of the company.............................................................................................. 23
The reason behind the Necessity for the change and key drivers............................................. 25
Transformation approach and reflection of Kotter's change concept ....................................... 27
Key success factors of this particular change situation ............................................................ 30
Recommendation to recover the challenges that faced the company while elaborating on the
initiated business transformation .............................................................................................. 32
Conclusion ................................................................................................................................ 33
Reference List ............................................................................................................................... 34
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Part 1: Strategic Management
Strategic management is a procedure of articulating as well as executing administrative
approaches in command to accomplish the preferred objectives and purposes. It encompasses
making decisions and captivating movements that outline the long-term course of the
administration. Strategic management encompasses examining the internal as well as external
surroundings of the organization to recognize its strengths, weaknesses, opportunities as well as
threats. Grounded on this examination, strategies are articulated as well as executed to
accomplish the administration's objectives and purposes. This comprises setting purposes,
defining approaches, instigating plans, and observing development. Strategic management is a
vital procedure for any organization to confirm its enduring accomplishment and effectiveness in
Strategic management is specifically important in the global container shipping market
owing to the extremely competitive as well as continuously developing nature of the diligence.
Container shipping encompasses transporting goods transversely over international borders; also,
corporations must circumnavigate complex guidelines, fluctuating demand, as well as
technological progressions to stay competitive. Effective strategic managing strategically in the
container shipping sector encompasses a thorough examination of the internal and external
environment, comprising marketplace trends, customer requirements, as well as the competitive
landscape. Corporations correspondingly contemplate aspects such as energy prices, port
infrastructure, and ecological guidelines. Based on this examination, container shipping
corporations must articulate approaches that enhance their processes, improve productivity, and
also increase productivity.
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The global nature of the container shipping industry and strategic management
correspondingly necessitates a deep indulgence of international trade as well as regulatory
frameworks. Corporations must be capable to familiarize with fluctuating geopolitical
surroundings as well as trade policies. Effective strategic management is important for container
shipping corporations to endure competitively in a quickly fluctuating global marketplace. By
instigating effective strategies, corporations can expand their processes, upsurge productivity and
also accomplish continuing accomplishments.
Comprehensive and well-structured Strategic Analysis of the Market for Global
The global container shipping marketplace is a vital constituent of the worldwide
economy, as it is responsible for the conveyance of goods everywhere in the world. The industry
is extremely competitive, with a few prevailing players as well as various smaller corporations.
This strategic analysis will observe the global container shipping market, comprising
marketplace magnitude, trends, competitive landscape, as well as future outlook (du Plessis, van
Eeden, & Goedhals-Gerber, 2022). Container shipping corporations transport goods everywhere
in the world, as well as the marketplace is extremely competitive through a few big corporations
as well as several smaller ones. This strategic analysis will offer an outline of the current status
of the global container shipping market as well as the future outlook.
Status Quo: The global container shipping market magnitude was esteemed at “$8.7
billion” in “2020” and is predictable to extend “to $12.3 billion” by “2027”, increasing at a
“CAGR” of “4.5%” from “2021” to “2027”. The Asia-Pacific region controls the marketplace,
accounting for more than “60%” of the worldwide marketplace share (Notteboom, Pallis, &
Rodrigue, Disruptions and resilience in global container shipping and ports: the COVID-19
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pandemic vs the 2008–2009 financial crisis, 2021) The marketplace is subject to numerous
inclinations, comprising an upsurge in demand for container shipping facilities owing to
globalization as well as blockchain have transformed the industry also enhanced competence.
The industry is correspondingly progressively concentrated on sustainability as well as
ecological concerns, driving the implementation of eco-friendly practices as well as decreasing
Figure 1: Container Ship Capacity deployed on major trades
Competitive Landscape: The global container shipping market is extremely competitive,
through a few leading players as well as many smaller corporations. The topmost five performers
in the marketplace, including “A.P. Moller-Maersk”, “Mediterranean Shipping Company
(MSC)”, “CMA CGM Group”, “Hapag-Lloyd”, as well as “Ocean Network Express (ONE)”,
account for more than “50%” of the marketplace share (Hale & Pooler, 2020). “A.P. Moller-
Maersk” is the leading competitor in the industry, with a marketplace share of everywhere
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“16%”. “MSC” is the second-largest rival, with approximately "14%" of the market. “CMA
CGM Group” is the third-largest competitor, with a marketplace share of nearly “10%”. “Hapag-
Lloyd” is the fourth-largest performer, with a marketplace share of around “7%”. “ONE” is the
fifth-largest performer, with a marketplace share of around “5%”.
Figure 2: Container Shipping Market Competitive Landscape
Future Outlook: The container shipping marketplace is estimated to endure to cultivate
in the upcoming years, driven by accumulative demand for goods as well as international trade.
The diligence is correspondingly perspective to understand further technical advancements,
comprising the implementation of autonomous ships also augmented usage of digitalization as
well as big data. Ecological concerns are correspondingly probable to drive diligence in the
direction of greater sustainability, with an emphasis on decreasing discharges and implementing
eco-friendly practices (Tang & Veelenturf, 2019). The "COVID-19 pandemic" is estimated to
endure to impact the industry, with changes in customer behavior as well as "supply chain"
disturbances expected to continue in the short term. Consolidation and mergers between key
performers in the industry are correspondingly estimated to continue, leading to augmented
marketplace share as well as "economies of scale". The industry is likely to endure extremely
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competitively, with new performers arriving in the marketplace as well as existing performers
increasing their performances.
Application of different, adequate analytical concepts and methods based on data
The COVID-19 pandemic has had a significant influence on the world, resulting in a
health crisis as well as an economic slowdown. The pandemic has correspondingly conveyed to
light the complex affiliation between globalization as well as the spread of transmittable
diseases. Though, one astonishing aspect of the pandemic has been the resilience of container
shipping, a significant component of the globalized economy. Globalization denotes the
interconnectedness of states as well as the integration of economies, principles, as well as
societies transversely over borders. Container shipping has played a substantial role in
simplifying globalization, permitting goods to be conveyed resourcefully as well as cost-
effectively transversely to the world's oceans.
Container shipping is an important component of the worldwide supply chain, permitting
the resourceful movement of goods transversely over borders. Despite the disturbance instigated
by the pandemic, container shipping has proven to be extraordinarily resilient. Firstly, container
shipping has continuously been an extremely controlled industry, with strict safety as well as
hygiene etiquette in place (Karam, Eltoukhy, Shaban, & Attia, 2022). These etiquettes have been
reinforced in response to the pandemic, with improved cleaning processes as well as the
enactment of social distancing measures on ships. One of the significant drivers of the resilience
of container shipping is its efficiency. Container ships are designed to transmit a huge amount of
cargo, permitting goods to be transported in bulk at a “lower cost per unit”. This has made global
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trade more manageable to smaller corporations, which can nowadays compete with bigger
organizations on a global scale.
Container shipping has correspondingly promoted the widespread implementation of
digital technologies (Dirzka & Acciaro, 2022). Various shipping corporations have capitalized
profoundly on digitalization, permitting remote work as well as paperless communications. This
has facilitated minimalize disturbances produced by lockdowns as well as travel constraints.
Container shipping has correspondingly advanced from developments in technology, such as
mechanization as well as digitalization, which have enhanced the rapidity as well as
dependability of consignments. Container shipping has correspondingly been capable to
familiarize rapidly with fluctuating marketplace circumstances. The pandemic has dislocated
worldwide trade flows, with certain trades undergoing a substantial growth in demand while
others have confronted a sharp decline.
Container shipping corporations have been capable to respond to these fluctuations by
transposing their containers as well as adjusting their directions to meet demand (Ali, Arslan,
Chowdhury, Khan, & Tarba, 2022). Though, it is significant to note that the resilience of
container shipping has not been worldwide. The pandemic has emphasized the susceptibilities of
definite characteristics of the globalized economy, such as the dependence on just-in-time
inventory management as well as the attentiveness of production in definite provinces. These
susceptibilities have led to deficiencies in certain goods as well as disturbances to “supply
The pandemic has correspondingly shown dissimilarities as well as inequities within the
globalized economy (Golan, Jernegan, & Linkov, 2020). The impression of the pandemic has
been felt excessively by low-income nations as well as disregarded communities, emphasizing
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the prerequisite for more equitable as well as sustainable methods of globalization. One concern
is the ecological impact of container ships, which discharge huge amounts of greenhouse gases
as well as subsidies to weather change. The industry has taken phases to decrease its carbon
footprint, such as by exhausting cleaner energies as well as enlightening competence, but more
requirements to be done to discourse this dispute.
While container shipping has demonstrated to be unexpectedly resilient in the wake of
the "COVID-19 pandemic", this flexibility is not without its boundaries. The pandemic has
unprotected the susceptibilities as well as discriminations of the globalized economy as well as
emphasized the requirement for more sustainable as well as equitable procedures of globalization
(Zhang, Hayashi, & Frank, 2021). The industry's competencies, as well as flexibility, have
facilitated to drive of economic development as well as an intensification of admittance to global
marketplaces, but its ecological impact, as well as communal significance, must correspondingly
be taken into account. As the world endures to turn out to be more consistent, it is important to
discover techniques to discourse these challenges as well as confirm that the welfare of
globalization is shared more impartially.
Future Action and Strategic Market Positioning to give to the Board Managers
Increasing complications in worldwide supply chains are constructing them unproductive,
susceptible as well as unsustainable. At Maersk, the Strategic vision is to turn out to be the
Global Integrator, proposing accurately assimilated logistics solutions that attach, defend as well
as streamline its consumers’ supply chains. As a manager at AP Moller-Maersk Group, there are
several recommendations which would make with regard to Groupe A.P. Moller-Maersk:
Diversify the Business: The A.P.Moller-Maersk Group must contemplate differentiating
its business beyond the shipping industry. The shipping industry is extremely cyclical, as well as
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the corporation is exposed to substantial risk (Maitra, Chandra, & Dash, 2020). By
differentiating into other trades, such as logistics, oil as well as gas, or retail the corporation can
decrease its risk acquaintance as well as upsurge its returns streams.
Invest in Digital Transformation: The A.P. Moller-Maersk Group must capitalize on
digital transformation to modernize its procedures as well as progress customer service. This can
embrace the execution of innovative technologies such as “blockchain”, “artificial intelligence”,
as well as “machine learning” (Cichosz, Wallenburg, & Knemeyer, 2020). By implementing
these skills, the corporation can decrease costs, progress productivity, as well as improve its
Pursue Strategic Mergers and Acquisitions: The A.P. Moller-Maersk Group must
pursue strategic mergers and acquisitions to reinforce its place in the marketplace. This can
embrace procuring corporations that accompany its prevailing business, such as logistics
benefactors or container companies Container shipping line brand initiatives following mergers
and acquisitions: carriers' visual identity alternatives., 2020. (Notteboom, Satta, & Parola). By
procuring these corporations, the A.P. Moller-Maersk Group can increase its marketplace share
as well as progress its complete effectiveness.
Expand into Emerging Markets: The A.P. Moller-Maersk Group must contemplate
growing into developing marketplaces such as “Asia”, “Africa”, as well as “South America”.
These marketplaces have substantial development prospects as well as are underserved by
numerous logistics providers (Mhlanga, 2021). By growing into these marketplaces, the
corporation can capture innovative business and increase its profit streams.
Develop Sustainable Business Practices: The A.P. Moller-Maersk Group must develop
sustainable business practices to decrease its environmental impact as well as improve its status.
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This can embrace capitalizing on clean technologies such as “electric ships” or decreasing the
corporation's carbon footprint through the usage of renewable energy foundations (Kumar &
Anbanandam, 2019). By emerging sustainable business practices, the corporation can fascinate
ecologically sensible consumers as well as stakeholders.
Optimize Fleet Management: A.P. Moller-Maersk Group prerequisites to constantly
enhance its fleet management to confirm the furthermost competent usage of resources. This
might embrace capitalizing in bigger container ships, accompanying other shipping corporations,
as well as regulating courses to decrease energy consumption as well as discharges (Mehmood,
Diversify the Customer Base: A.P. Moller-Maersk Group can decrease its dependency
on a few large consumers by differentiating its customer base. This will support decreasing risk
as well as offer constancy in the face of economic instability.
Sustainability: Sustainability is progressively becoming a significant aspect of the
container shipping industry. A.P. Moller-Maersk Group can work to decrease its ecological
impression by capitalizing on substitute energies, heightening directions to decrease discharges,
as well as integrating sustainable practices throughout the “supply chain” (Orji, Kusi-Sarpong, &
Digitalization: Invest in digital technologies to rationalize processes, decrease charges, as
well as progress customer service. This might embrace executing blockchain technology for
supply chain transparency, exhausting data analytics to improve routes as well as shipping
schedules, and proposing online booking as well as tracking services for consumers (Tijan, Jović,
Aksentijević, & Pucihar, 2021).
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Risk Management: Contrivance robust risk management strategies to alleviate risks
accompanied by marketplace volatility, geopolitical indecision, as well as other aspects that
could influence the container shipping industry (Nguyen, Chen, & Du, 2021). This could
comprise emerging contingency strategies for emergencies as well as crises, differentiating
routes as well as marketplaces, and observing industry trends and controlling modifications.
It can be concluded that Strategic management is the procedure of formulating as well as
implementing a corporation's overall approach to accomplish its objectives as well as aims. It
empowers companies to recognize and take advantage of prospects, minimalize threats, allocate
resources efficiently, as well as align their actions with their complete mission as well as vision.
In the global container shipping market, strategic management shows a critical role in the
accomplishment of corporations functioning in this industry. The container shipping marketplace
is extremely competitive, with several players challenging for marketplace share. Therefore, a
corporation is required to implement effective approaches to stay ahead of the rivalry as well as
accomplish its purposes.
Effective strategic management in the container shipping market encompasses a thorough
analysis of the industry's internal as well as external surroundings, recognizing marketplace
trends, consumer requirements, as well as competitor actions. Corporations' prerequisite to
developing approaches that take into account marketplace dynamics, worldwide trade
movements, and developing technologies. Corporations' prerequisite is to implement effective
risk management approaches to alleviate risks as well as confirm the sustainability of their
processes. Effective strategic management is necessary for corporations functioning in the global
container shipping marketplace.
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By implementing operative approaches, capitalizing on technology as well as
modernization, as well as handling threats, corporations can stay ahead of the rivalry as well as
accomplish their purposes in this extremely competitive industry. Companies that capitalize on
effective strategic management are healthier placed to accomplish their objectives, stay
competitive, as well as flourish in today's dynamic business surroundings.
Part 2: Human Resource Management
The discussion is concerned with HRM, or human resource management, as it is known
in organizations that contribute significantly to organizational resilience, agility, and
performance. Maintaining alignment of HR strategies with corporate strategies is an important
concern for organizations that have been evaluated in detail. It is observed that HR strategies
which are a component of corporate strategies ensure workforce satisfaction which enables the
performance of other corporate strategies as well. Therefore as a corporate strategy itself, the HR
strategies are enablers of an organization are other corporate strategy implementation. Further
evaluating the concept of HRM the importance of talent management has been discussed which
contributes to business performance. The discussion also generates organizational measures to
evaluate the war of talents that further has been identified in terms of HR key performance
indicators that ensure governance and control over the measures.
Importance of aligning the HR Strategy with the Corporate Strategy
Importance of HR Strategy
Human resource is a vital enabler of business performance which forms an integral
aspect of the organization’s resource capacity and strategic approach. In other words, the human
resource of an organization is constituted by its capable workforce who leverages their
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experiences and skills to perform the tasks and strategies efficiently which aim for overall
competitive advantage and business performance (Herrera & de las Heras-Rosas, 2020). For this
reason, an organization needs to develop a management approach toward human resources that
not only ensure favorable working conditions, rewards, benefits, or other amenities but also
ensure to enhance their motivation toward their responsibilities effectively. Increased motivation
of the human resources generated by effective Human Resource Management contributes hugely
to organizations' strategic agility and, therefore, develops high organizational resilience.
Therefore, it can be said that attaining strategic agility for a multinational company can be
ensured by developing key human capabilities that contribute to accelerating the transformation
of existing business models (Ahammad, Glaister, & Gomes, 2020). Evaluating the understanding
in simple words it can be said that if an organization manages the expectations and requirements
of its human resources strategically and effectively then the workforce will feel motivated and
engaged to perform their duties capably. As a consequence, the strategic agility of the
organization will be improved since human capabilities play a crucial role in renewing or
transforming an organization's strategic approach that shapes its agility. Many multinational
organizations globally, therefore, take HRM as a priority since they understand the agility and
performance that an organization can derive from a workforce that is managed with care and
Alignment of HR Strategy with Corporate Strategy
Corporate strategies deliver a determined direction to organizations in terms of a long-
term plan that underpins the aims and goals of the organization. Therefore, an alignment of the
human resource strategies is highly crucial to derive an optimized organizational performance
that follows the corporate strategy effectively. The alignment is not only crucial but also
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prominent since HRM initiates with a corporate strategy that attempts to retain the workforce in
the organization and ensure their development of them enough to generate capability-driven
outcomes (Matsumoto, 2019). It can, therefore, be said that managing human resources is a
corporate strategy in itself which is concerned with addressing the needs and expectations of the
employees and making them feel motivated to deliver performance. Observing the situation it
can be understood that even though HRM is a corporate strategy in itself, efficient
implementation and success of this strategy will further contribute to other organizational
strategies concerning activities of production, supply chain, marketing, or sales. Therefore, an
alignment between human resource strategies and corporate strategies can be observed where
HRM being a corporate strategy itself ensures the performance of other strategic domains of an
An example of Coca-Cola can be considered where the concern of HRM is identified as a
priority that contributes significantly to the performance of its other strategic operations. The
organization contains around 70,000 people working globally for its corporate aims and strategic
performance who are managed capably by the organization through the adoption of diversity,
inclusion, and equity (Coca-colacompany.com, 2023). The company can generate optimized
employee contribution in its strategic operations like brand building, innovation, revenue
generation, resource allocation, and so on to win more consumers and market share (Coca-
colacompany.com., 2023). The effectiveness of its HR strategies that are driven by diversity,
inclusion, and equity, therefore, have been observed to be highly beneficial for the company's
ability to address mentioned corporate strategies. This is a reflection of how HR strategies align
with corporate strategies and if a company instills a capable HR approach then the acquisition of
corporate goals can be made possible.
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Importance of talent management in business performance
Talent management adopted by organizations helps to develop high-performing and high-
potential employees by implying a distinct architecture of development that caters to the
employee needs for capacity improvement. In other words, the measures of talent management
enable an organization to develop the workforce with the required skills and potential and
allocate them to various operational and strategic domains so that the workforce is capable of
leveraging the developed skills and delivering high performance. For this reason, the importance
of talent management can be considered highly significant in generating business performance
since it identifies the potential of the employees effectively and further caters to those employees
with strategies of potential development that derive increased efficiency and performance.
As observed in the case of Coca-Cola the awareness concerning talent management of
employees has been significant. The organization is a US-based but globally recognized
beverage corporation whose operations are diverse and whose market presence is prominent.
Needless to say, the contribution of its human resources can be considered highly responsible for
its widespread presence and effectiveness. The company for this reason ensures to satisfy the
human resources not only through diversity, equity, or inclusion but also through effective
strategies to foster and develop talent that contributes to its operations. The company recognizes
the challenges that are inherent in the fluctuating business environment for which the company
commits itself to increase its female talent representation in the positions of leadership to 40% by
2030 (Coca-colafemsa.com., 2023). The company aims to continue aligning with its founding
values of diversity, equity, and inclusion while at the same time developing the skills and
expertise of the female talents to suit the leadership positions. Coca-Cola can be considered a
significant example of how talent management impacts business performance since the company
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understands that it has many talented individuals working across the company in all markets who
can be further developed to derive the best possible outcome from them. The company won the
LinkedIn Talent Award owing to its excellence in talent engagement, the inclusion of
workplaces, building employer brands, and encouraging learning and development that
contribute greatly to employee retention (Coca-colafemsa.com., 2023). The initiatives taken by
the company to ensure talent management include attracting the best talent, developing programs
like internships with top US universities along with adhering to lab leadership programs for the
functions of the supply chain (Coca-colafemsa.com., 2023). The operations of Coca-Cola are
multidimensional and diverse which when considered in the global context is far more complex
and demanding. The contribution of the employees in performing the activities and maintaining
the organizational responsibilities, therefore, can be considered a paramount factor in generating
the level of success that the company experiences.
In an overall understanding, it can be said that if multinational companies incorporate
strategies to acquire and develop talented individuals then the ability to impact the business
performance will be enhanced. This is because with developed talent the workforce will be able
to incorporate greater skills and capabilities into their activities as a result of which the business
will be provided with greater value and performance.
Measures to evaluate of war of talents
The war on talent contains a significant risk to the success and sustainability of
organizations which has been observed to be a consequence of the dearth of talent in the market
(Alagabi, Abdul-Majid, & Abd Rashid, 2020). In this situation, it has been that organizations are
disturbed by the limited availability of talents that are required to occupy the job roles in the
complex organizational ecosystem. This situation has also created a high demand for talent in the
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market even though the supply is strictly restricted. The emergence of high competitiveness for
talent, therefore, has caused a war of talents which the organizations need to cope with through
strategic measures and attractive job premises. The organizations need to remember that the
employees have a wide base of opportunities to choose from since the demand curve is in their
favor whereas the organizations are struggling with a lack of supply of talent making it
compulsory for the organizations to put their best foot forward in attracting talents to their
Amidst a war of talents that has been impacting the organizations with a lack of required
talents necessary for the business; the organizations need to undertake certain measures to
generate a competitive employer perception among the limited base of employees in the market.
Certain measures that can be adopted by organizations to address the talent war have been
Providing a favorable working environment:
A working environment where the employees feel included, equal, valued, and motivated
acts as a remarkable contributor of value to the employer's perception. Taking the example of
Coca-Cola it can be observed that the organization instills diversity, inclusion, and equity within
its internal environment that caters to the existing employees with high satisfaction, value,
respect, and motivation (Coca-colacompany.com, 2023). The same approach can be adopted by
other organizations where the acquisition of talent from a limited supply can be done by
promising a favorable working environment where they will get to participate in inclusive
decision-making, be respected irrespective of their diverse backgrounds, and receive
opportunities to grow further in talent as well as career.
Providing appealing compensation:
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Compensation acts as a major tool to lure talents toward the organizations and precisely
refers to the rewards given to employees for their work that also enhances motivation,
performance, and satisfaction (Bangun, Ratnasari, & Hakim, 2019). Therefore, paying
competitive compensation deals will help the organizations to establish an attractive perception
in the talent market which will greatly contribute to the acquisition of the required talent within
the organization from its limited availability.
Providing the talents with security in terms of job, health, as well as safety, can contribute
to enhancing the employer's perception of the organization significantly. Security through
insurance, safety programs, as well as rewards or benefits can be promised to the talents that both
exist in the organization and to be acquired by the organization to intensify its appeal in the labor
market. If an organization can protect the workforce with necessary strategies of support and
security then the talent in the market will feel increasingly inclined to work freely for the
organization and help the organization to manage the war of talents.
Human Resource KPIs to control the measures
The labor market is rapidly changing which makes the role of the employee highly
important (Davidescu, Apostu, Paul, & Casuneanu, 2020). Organizations that provide a favorable
working environment, competitive compensation, security, and safety, can acquire talents from
the fluctuating labor market. However, certain HR key performance indicators need to also be
implemented by the organization to instill a control mechanism over the measures countering
talent war as it will help the organizations to monitor the performance that the talents are
delivering amidst such strict availability.
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Training investments: Measuring the capital investments made to develop and manage
the talents can be considered a significant KPI of the measures taken by the organization to
acquire the talent. Increased investments in training would indicate a low-performing workforce
delivering the performance shortcomings of the organization.
Employee productivity: The completion of a task given to the talent within the deadline
by maintaining the quality standards would deliver a high-performance capacity of the acquired
talent. In other words, the productivity of talent is determined by the extent to which it can
generate results for the organization by leveraging its skills and expertise. Therefore, this can act
as a major KPI for the organization trying to incorporate control over its ecosystem since
performance evaluation reflects talent engagement and performance capacity.
Retention and turnover rate: A high rate of employee turnover would indicate a lower
organizational appeal whereas a high rate of employee retention will indicate a high
organizational appeal. Organizations need to monitor their retention and turnover rates which
will reflect how many employees are staying with the organization and how many are leaving.
The control over measures taken by the company to acquire the talents can be effectively ensured
through the rates of retention and turnover as the company will know how to alter itself to
increase retention and decrease turnover.
The overall discussion revolves around the concept of Human Resource Management
which acts as a crucial contributor to business performance and employee acquisition. The
alignment of HR strategies with the corporate strategy has been observed to be significant since
being a corporate strategy itself the strategies of HR develop the motivation of the workforce that
further generate a high-performing approach to other corporate strategies. As a result, an
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alignment is established since with increased HR satisfaction greater performance in
implementing corporate strategies can be achieved. Further with the example of Coca-Cola the
importance of talent management in terms of business performance has been discussed where the
ability of the organization to upskill its workforce contributes greatly to its operational
efficiencies generating higher performance. In a situation where the war of talents in the market
is generating a lack of talent supply irrespective of high demands, organizations need to develop
an employer perception where the available talents in the market feel inclined to work for the
organization. Providing favorable working conditions, competitive compensation and security
can be some of the measures to combat the war on talent. Certain control approaches in terms of
HR KPIs have also been provided which help the organization to monitor the performance
derived from the talent acquired amidst a talent war.
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Part 3: Business Transformation
Business transformation involves the merger and acquisition, of staff changes,
Outsourcing, and new business model changes. Global companies have attained the maximum
impact on the transformation of businesses over the past decade. In the net growth, companies
create new products and services in response to the corer market change. Walt Disney has
announced a strategic change in their media as well as business entertainment. The innovative
structure has been intended to further fast-track the company’s straight consumer strategy
(Thewaltdisneycompany.com, 2020). Business transformation mainly involves transformational
change like “digital transformation”, “cultural transformation”, “organizational transformation”,
and “management transformation”. In light of tremendous success, Walt Disney has changed
their new structure by developing as well as generating original content for the business's
streaming services The new Media and entertainment distribution organization is in charge of
this business transition.. This essay is structured on the business transformation of Walt Disney
on their organizational, leadership, and digital change.
Current situation of the company
Organizational structure: Walt Disney recently announced details of its strategic
structure which is focused on the empowerment of a creative leader and maintaining creativity.
The company will be recognized as belonging to the three key collaborative business categories,
and its streaming business is on the path of "sustainable growth." (Thewaltdisneycompany.com,
2023). "Disney Entertainment", "ESPN", and "Disney parks" are all these three business
segments leaders should exercise complete infrastructure and services and financial
accountability for technology, sales, and distribution decisions. The CEO of Walt Disney made a
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commitment to take this business into a new era of expansion by continuing to be creative in his
leadership style. Alan Bergman and Dana Walden, who are in charge of the company's portfolio
of entertainment media, will serve as co-chairs.as well as streaming
(Thewaltdisneycompany.com, 2023). Currently, Disney's unmatched gathering of well-known as
well as trusted franchises jointly reaches a streamlined portfolio. Immediately, several share
services organizations across the company are going to support both ESPN and Disney.
Restructuring the strategic initiatives have changed the company's capital investment, asset
acquisitions, and expanded business line. The execution of the business plan includes the pricing
decision, cost structure, management, and content IP. Although currently, Disney is beyond
control over technological development, availability of content, consumer preferences and DTC
services, and linear network (Thewaltdisneycompany.com, 2023).
Financial structure: In the financial year 2022, revenue has increased by 23% and
diluted earnings per share increased income by $1.75. The EPS has increased due to the higher
segment of operating that reflects the growth at DPEP and the lowering operating result at
DMED (Thewaltdisneycompany.com, 2023). The cost of services has increased by 19% due to
higher programming and production costs.
Operation OF INTERNATIONAL LOGISTICS AND SUPPLY CHAIN 25
Figure 1: Analysis of the current financial performance of Walt Disney
The major revenue and expenses categories for the business segment
cost and segments consist of the operating expenses. "Direct-to-consumer" business focused on
the subscription fees, advertisement sales, and fees of licensing which is programming by third
parties. The substantial progress toward the strategic transformation Walt Disney has
successfully reached net growth which is focused on the change in revenue.
The reason behind the Necessity for the change and key drivers
Increased competitive pressure: The company has faced substantial competition in its
business that provides the services in form of lodging, tourism, and entertainment. Competition
in content and human resources extremely addressed the risks of sustaining the business. As
Operation OF INTERNATIONAL LOGISTICS AND SUPPLY CHAIN 26
result, the company has changed its structure to maintain business sustainability and deliver
creative content. Their content and sales licensing operations compete for the customers in form
of entertainment. With an increase in the number of competitors in all the other forms of
entertainment, Walt Disney focused to change their technology, business talent, and content
(Thewaltdisneycompany.com, 2023). The board director of Disney focused on the long-term
sustainability of value and ensuring the right mix of experiences. Competition in television
networks may further increase, so changes in the market structure it is necessary for the
organization to produce high-quality creative material. As result, Disney has changed the cost of
compensation for their employees and emphasis on structural change.
Uncontrolled events that affect demand: the company has announced Disney branded
retail store to explore a new type of business. A new pricing model and cost alignment have been
adjusted in their organizational structure. In addition, recent leadership changes to understand
changing consumer purchasing power. The external events included macroeconomic conditions
that adversely impact demand. Due to the pandemic, since 2020, DPEP and theme park resorts
have been closed. As result, Walt Disney brought a new service "Disney+" to address customer
behavior and fulfill the demand. It has been observed that consumer patterns have changed like
going to watch movies in the theatre has declined. In terms of this, to maintain sustainability,
Disney asses to risks and opportunities in the complex global marketplace. There was an issue
related to the digital economy, the company has been notified of the IP right of a third party.
Disney initially changes their operations and business services to control the demand and utilize
the digital form.
Changes in consumers' consumption patterns and taste preferences: to overcome
consumer products, changes can be often unpredictable according to Disney CEO
Operation OF INTERNATIONAL LOGISTICS AND SUPPLY CHAIN 27
(Thewaltdisneycompany.com, 2023). CEO tried to alternatively invest international strategy that
creates value consideration. The success depends on the offering to those consumers who are
outside of the US. Therefore, the success of Disney's business depends on the ability to adopt the
changing consumer taste and preferences not only in the US but also outside. Most often Disney
has invested in the amount of content production, cruise ships, and hotels that facilitate customer
platforms. Further, consumer perception is matter in terms of public interest. In terms of
maintaining reputational risk, Disney deliberately accelerates the change in their business model.
Transformation approach and reflection of Kotter's change concept
"Kotter change model" is the framework that identifies change management in business
through eight different steps. The change management model is designed to help leaders succeed
in organizational change which is effective for the organization (Kang, Chen, Svihla, Gallup,
Ferris, & Datye, 2022).
Step 1: create a sense of urgency
Disney has identified the sense of urgency to change their business services during the
pandemic when consumers have changed their behavior due to global restrictions. The goal of
the first step is organizational management which generates awareness about the organization
about the business position (Yie, 2021). During the fall of the sudden demand for theme parks,
the company has identified that their business requirements to change.
Step 2: Create a guiding coalition
To achieve business transformation, momentum is difficult to maintain. This second step
refers that preparing employees for the forthcoming change to encourage and participate in them
(Nariman only, 2022). Here comes the role of leadership which brings a great impact on the
success of the organization. Team and group performance achieve organizational effectiveness.
Operation OF INTERNATIONAL LOGISTICS AND SUPPLY CHAIN 28
Walt Disney has identified the weakness and executive coaching has a profound effect on team
Step 3: develop vision and strategies
According to the challenges arising from internal sources, Disney focuses on their long-
term vision. This step aims to maintain a clear vision and plan effective strategies that help the
team achieve this. The main vision of Disney is to reflect preserving the iconic brands while
remaining creative minds with innovative technologies that make the organization a "first-rate
entertainment firm" (Thewaltdisneycompany.com, 2023). This vision has been aligned with the
current change which is appeal to stakeholders as well.
Step 4: communicate the change vision
This step suggests communicating the visions in a way that encourages and supports the
change in the organization. This makes sacrifices to support change which mainly focuses on
problem-solving skills and decision-making skills. In terms of this, Walt Disney communicates
effectively with current leaders and the "Media entertainment distribution group". Mr. Daniel is
in charge of the "media and entertainment distribution group," which is accountable to make
decisions on data technology functions across the world for content engines
(Thewaltdisneycompany.com, 2023). This group is responsible for the close collaboration of the
content creation team and programming market strategies.
Step 5: remove the barriers to action
Identification of the market restrictions is the main goal of this step; this step suggests
that organizations have to guide the coalition and senior management to remove the barriers.
During the initiative to bring the new content streaming online services, there remain the risks of
other competitors. The company launched Disney+ to keep in mind where the population
Operation OF INTERNATIONAL LOGISTICS AND SUPPLY CHAIN 29
density is high and people belong to different languages. Featuring Disney+ and HotStar,
exclusively brings the “international cricket council” (Thewaltdisneycompany.com, 2023). In
doing so, the company employed 2, 20,000 people who will produce exceptional connections and
cultivate an inclusive environment. Companies enhance the culture that aims for internal talent
mobility. In all organization processes, Company has encouraged a reward system by supporting
benefits to employees.
Step 6: accomplish a short-term goal
To achieve the actual change, organizations have to fix the short-term goal to maintain
the change process (Proaño, 2022). Identifying short-term initiatives like reducing costs and
encouraging employees. To set the changes, Disney hosts 230-caliber training by welcoming
professional athletes. The company primarily projected the stage of developing internal software
they maintain training and capitalize on the software development. Disney took a cultivated
environment that encourages and celebrates the authentic expression of employees
(Thewaltdisneycompany.com, 2023). So, short-term goal leads to reckoning the change
initiatives that attain motivated team and improve the financial performance.
Step 7: Build the new change
Companies have to identify the maximum advantages of the applicable new changes.
Disney+ revenue is derived from the “Subscription Fee” that plans to introduce additional
supported services. The new change in content streaming generates the “premier access fee”.
Due to Disney+, their advertisement revenue growth has increased by 7% which increases the
impression of the brand (Thewaltdisneycompany.com, 2023).
Operation OF INTERNATIONAL LOGISTICS AND SUPPLY CHAIN 30
Figure 2: Total number of subscriptions
It refers to relying on the credibility of vision to change, due to bringing this new change
leadership role adjusted in company's business strategies. Supporting the growth strategies
international channels business has focused.
Step 8: organizational change
The contempt leadership change announcement within the company that plans to change
the structure and operation. Robert Iger set the strategic direction to work closely with the board.
Disney expressed sustainability to change internal resources and focus on creativity. By
incorporating creative content, the distributive effect has been taken into account by the external
market force. Structural change has been created to overcome obstacles and thrive in
sustainability in the external environment.
Key success factors of this particular change situation
Better position of company’s streaming services: After the invites change on the
significant transformation, Walt Disney maximizes the potential creative team and unparalleled
brand (Thewaltdisneycompany.com, 2023). Working together has reshaped their organizational
Operation OF INTERNATIONAL LOGISTICS AND SUPPLY CHAIN 31
structure and led to sustained business growth. The company's streaming services are in a better
position whether there are global economic challenges that deliver value to shareholders.
Figure 3: Segment result
This table shows the performance based on "segment operating income," the operating
performance of the company's divisions. The entire segment helps investors by allowing
evaluation changes that affect net income positively, increasing by 11%
Increased revenue in Disney entertainment distribution: Linear network revenue has
decreased because the increase in the cable due to lower programming enhances the rise of
manufacturing costs. The decreased programming may attribute to the lower cost. International
channel revenues of the company have also decreased by 21% which further decreases the
operating income. This decline in affiliate revenue reflects an impact on the channel closure with
the higher contractual rates. This generates a barrier to initiatives that suggested change has
taken place in the organization.
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Figure 4: Result of Media and entertainment distribution
On other hand, "direct to consumer revenue" has increased by 13% which reflected
Disney+ increased business growth and reduce market cost (Thewaltdisneycompany.com, 2023,
c). At the same time, it has higher production costs and technology costs, which attribute to the
higher average cost per hour.
Recommendation to recover the challenges that faced the company while
elaborating on the initiated business transformation
Minimizing the risks have to be the main focus while driving the business change (Sittrop
& Crosthwaite, 2021). The organization can focus on the particular services that change the
business model. As it has been observed, structural change focuses to bring new content services
so Disney may only focus to emphasize "direct consumer services". This may avoid the
operating loss that the organization has faced as a result of organizational transformation. Interest
Operation OF INTERNATIONAL LOGISTICS AND SUPPLY CHAIN 33
expenses require predicting which may offset the lower debt cost. "International Disney+"
provides services outside of the US like Canada, Latin America, India, Malaysia, and Indonesia.
Company may expand their international streaming services because it reduces the market cost
as a result of business malformation.
This essay has captured that change management takes place in the organization to
maintain business sustainability. It can be concluded that organizations have to pass through
different stages to ultimately make the initial change. Walt Disney has brought new ideas of
streaming services for doing this, they had to change not only technological segments but also
adopt leadership changes and implement organizational structure. The outcome of business
transformation always needs to be predicted positively. It has been observed that, due to business
transformation, Walt Disney generates strategic growth but faces high risks in technological
costs and international networking. It can be concluded that business transformation only will be
successful when the organization has core resources to manage the risks during the changing
process. The transformation has begun by talking about customer preferences and the
organization embarked on a purpose-driven mission by transforming its leadership strategy.
Operation OF INTERNATIONAL LOGISTICS AND SUPPLY CHAIN 34
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