...Why are ADS 's customer 's moving toward VMI arrangements ? Record companies are adopting VMI agreements because the national retailers are pressuring them to manage their own supply of cds , tapes and other products . This would be more cost efficient for the retailers and in return the companies will have more access to the monitoring of the point of sales which would also be beneficial to the company . 2. How will this impact ADS 's business ? How can ADS management take advantage of this situation ? With direct shipping to retailer stores, ADS has to come up with a better and more efficient delivery system as well as improve their monitoring and inventory of the products that they deliver for their customers. Obviously, the said changes would mean that ADS will need to change how they provide services to their customers. Instead of just duplicating and delivering it to the retailer, they should integrate logistics in their delivery and charge the customers for the delivery of the goods instead of relying on other delivery systems . 3. How should ADS manage logistics ? ADS can manage logistics by taking over the list of retail stores and the amount of products to be delivered to the specific retail stores , in this way ADS would be able to provide a more complete service to its customers in keeping with the arrangements of the VMI . 4. Why are the large national retailers moving toward a direct shipment model ? Retailers are moving towards a direct shipment model because...
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...Baxton Technology After working for another automotive hoist manufacturer, Mark Baxton took off and built his own hoist manufacturing business and named it Baxton Technology. Over the next nine years, Mark grew his business to over nine million dollars in sales. There were several factors that made Baxton Technology what it grew into by the late 1990’s. From the beginning, Mark founded the business on providing quality, safe products at a fair price to his customers. Many of these features set him apart from his competitors. Baxton offered a scissor lift type hoist system that was equipped with a safety locking system that allowed the hoist to be raised to any level and lock into place. The scissor lift mechanism also allowed mechanics to easily access the undercarriage of the vehicle. Along with quality workmanship, this lift offered alignment plates that gave mechanics accessibility to perform wheel alignment jobs. This mechanism wasn’t always offered with other style hoists from Baxton’s competitors. Functionality with installation was a high point with the scissor lift system. The low-maintenance style of hoist was labeled a surface lift, of which was installed directly onto the floor in less than a day. Mark and his staff continually made improvements to the lifts, adding safety features that showed Mark made a conscious effort to keep improving their product. This style of management and improvement ties directly into what the book called “Customer Characteristics, Expectations...
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...BUS 8350-131001 Supply Chain Management Audio duplication services Case Analysis Introduction Audio duplication industry is considered one of the major parts of the music business. It is a five billion dollars market. Audio Duplication Services known as ADS is one of the major working companies in the audio duplication industry. ADS main core business is duplicating and distributing cassette and compact disc. Recently this field faced many challenges not limited to changing the supply strategy. In this paper we are going to study ADS case. Overview Record companies use ADS services in order to duplicate and distribute compact disc and cassette. They constitute the main customers base for ADS, who distributes to large amount of retailers such music stores, Wal-Mart, Target, Kmart, and electronic stores. ADS market share is almost 20% of the five billion dollars market. ADS usually ships products to the retailer distribution centers and the retailer takes the responsibility of the last part of the supply chain. Retailers deliver products to their own stores. A problem arose when retailers asked record companies to take the responsibility of managing the inventory in stores. Retailers want record companies to own the inventory; the price will be transferred to those companies when goods are sold. On the other hand retailers provide the companies data from point of sales. The system is called VMI, record companies required ADS to help them managing...
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...Are parties becoming less ideological? Recently, political parties in many countries are becoming less ideologically attached and are beginning to move towards the centre ground. This is illustrated clearly with Fukuyama’s book, titled ‘the end of history and the last man’ which depicts how with the introduction of the 3rd way on the left, and many right wing policies now too extreme, the collapse of conventional ideology. He suggests there is now a final form of government since the end of the cold war. This is some what clear in the UK with the birth of New Labour in 1997, and the less extreme Conservatives, many argue they are simply both competing on economic grounds. The famous quote being ‘its economy stupid’, almost suggesting the economy is a new form of ideology. The same can be said for the US, but on less of a severe basis. Although Clinton is said to be most similar to Blaire, centering himself from extreme left wing policies, the rise of the TEA party in America, and to some extent Obama’s health care reforms can be said to be a revival of traditional ideology. Although to a less of an extent, Cameron’s Big Society can also said to be a revival of traditional Conservative policies. In terms of the economy parties are moving more centre-right and on social issues more centre-left. Although perhaps appearing very ideological in the US in particular American Politics is still very ‘catch all’. In terms of the economy it can be said parties and not becoming more ideological...
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...The Association of Southeast Asian Nations (ASEAN) is a regional association composed of the ten countries comprising Southeast Asia—Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar (Burma), Philippines, Singapore, Thailand, and Vietnam. Situated in a region covering an area of 4.46 million km² (equivalent to approximately 3% of the total land area of the earth), these countries are home to a burgeoning population of 600 million people, which is nearly 9% of the world's population. As a single economic block, its combined nominal GDP of USD 2 trillion ranks ninth in the world. Although relatively small compared to China, Japan, and Korea, ASEAN comprises one of the most dynamic emerging economies of the world, with an average nominal GDP growth rate among the ASEAN-6 (Singapore, Malaysia, Indonesia, Thailand, Vietnam, and the Philippines) of 4.5% during 1989–2009, and poised to grow between 5.7% and 6.4% in 2011–2012. In contrast, the global economy is expected to grow by only 3.3% and 3.7% in 2011 and 2012. What Is the AEC? ASEAN was formed in 1967 under the "3 pillars" of regional cooperation, namely security, socio-cultural integration, and economic integration. In 1997, ASEAN leaders declared the ASEAN Vision 2020, which aimed to transform ASEAN into a "stable, prosperous and highly competitive region with equitable economic development, and reduced poverty and socioeconomic disparities." Building on this vision, at their 2007 Summit ASEAN leaders affirmed their strong...
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... Back in 2002, the United States reached an agreement with the International Accounting Standards Board or IASB addressing the need to develop a common worldwide standard for financial reporting under the Generally Accepted Accounting Practices (GAAP) and the International Financial Reporting Standards or IFRS. This meeting resulted in what is known as the, “Norwalk Agreement.” What was discussed at that meeting was an agreement to streamline the financial reporting process to make more compatible. Additionally, they will try to work together on any upcoming programs of theirs to maintin this agreement (FASB, 2014). As we discuss these proposed changes, keep in mind that as of present day, not all recommendations have been implemented. The bigger question is, will they ever be fully implemented? One of the bigger issues that will affect U.S. GAAP is revenue recognition. A major diference between U.S. GAAP and IFRS, is that IFRS does not drill down as far in terms of the specifics of industries. How this pricing wil factor into the these revenue models will differ among the US GAAP and IFRS systems respectively. Under US GAAP, revenue is based on the pricing criteria, which results in these possible amounts generally not being recorded as revenue until these variables are accounted for. IFRS looks to the economic benefits associated with any transactions moving towards the resolution and the ability to account for the income in question, including...
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...rationale for Open Sky is taken to be to promote competition in the airline industry, and to give all airlines from ASEAN the scope to compete on intra ASEAN routes. Open Sky will also give airlines extra flexibility over their route development. Issues which need to be considered include: How well Open Sky will work in ASEAN? Will markets be competitive enough? Will there be shifts in hub location? Will anti competitive strategies affect operation? And will there be instability in the industry? 2. Experience of Open Skies Elsewhere There are many Open Skies bilateral agreements, and a few regional agreements. Few regional Open Skies agreements have led to substantial liberalisation or integration. The exception is Europe - Open Skies in Europe has meant the formation of a single aviation market. Significantly, this arrangement did not come about as a result of countries negotiating an open skies agreement - rather it was imposed on them by a central authority, as a consequence of the Treaty they signed when joining the Community. Open Skies have worked well overall in Europe. There has not been excessive instability, there has been a moderate degree of restructuring, and there has been significantly more competition, especially from the low cost carriers which now have an important share of the market. 3. Policy Background Within...
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...India’s Trade with SAARC Countries (Value in US $ Billion) | 2006-07 | 2007-08 | 2008-09 | 2009-10 | 2010-11 | 2010-11 (April-Oct) | 2011-12 (April-Oct) | Exports | India’s Total | 126.41 | 163.13 | 185.30 | 178.75 | 251.13 | 123.17 | 170.11 | % share of SAARC countries | 5.12 | 5.91 | 4.62 | 4.69 | 5.13 | 4.65 | 3.76 | Imports | India’s Total | 185.74 | 251.65 | 303.70 | 288.37 | 369.77 | 208.821 | 277.26 | % share of SAARC countries | 0.81 | 0.84 | 0.60 | 0.57 | 0.59 | 0.55 | 0.52 | Source:DGCI&S Highlights of Trade with SAARC | * During April-October 2011-12, Sri Lanka was the largest trading partner of India in SAARC region. * During April-October 2011-12, India has recorded a negative growth rate of exports with Nepal and Pakistan in SAARC region. * During April-October 2011-12, the lowest decline in growth of exports was recorded for Pakistan at (-) 34.93%. * Except for Bhutan, India runs a trade surplus with all other trading partners. | Bilateral Trade with Pakistan (Value in US $ million) Year | Exports | Imports | Total Trade | Balance of Trade | 2006-07 | 1350.09 | 323.62 | 1673.71 | 1026.47 | 2007-08 | 1950.53 | 287.97 | 2238.50 | 1662.56 | 2008-09 | 1439.88 | 370.17 | 1810.05 | 1069.71 | 2009-10 | 1573.32 | 275.94 | 1849.26 | 1297.38 | 2010-11 | 2333.67 | 332.51 | 2666.18 | 2001.16 | 2010-11 (APril-Oct) | 1066.90 | 201.16 | 1268.06 | 865.74 | 2011-12 (APril-Oct) | 694.25 | 226.16 | 920.41 | 468.09 | Source:...
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...Duplication Services Inc. California State University Northridge Executive Summary In today's economy, the majority of companies are aiming toward building Retailer-Supplier Partnerships (RSP). An example of such concept is the utilization of vendor-managed inventory (VMI). In this relationship, the supplier decides on the retailer’s appropriate inventory levels of each product and establishes the inventory policy. Moreover, the retailer does not own the merchandise until it is purchased by a consumer, while the supplier owns the inventory until the transaction is completed. The obvious benefit to the retailer is lower inventory costs, whereas the benefits to the supplier are less clear. The following example will look at how big national retailers are putting pressure on its supply base to engage in such RSP relationships. Audio Duplication Services (ADS) is a compact disc and cassette duplication and distribution company. Their main customers are the big record companies. ADS manages the master tapes and duplicates them upon customer requests. In turn, they distribute them to their customer’s music stores, distribution centers, and department stores. Some of the big national retailers include Wal-Mart, K Mart, Circuit City and Best Buy. These national retailers are currently pushing the record companies to implement VMI agreements. The record companies will be provided point-of-sale data from each of their store. The record companies would then decide how many CD’s and cassettes...
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...REGIONALIZATION Regionalization is a form of restructuring. Restructuring can be a tool that systems use to maintain long-term capacity. Regional economic integration means agreements among countries in a geographic region to reduce and ultimately remove tariff and nontariff barriers to the free flow of goods, services and factors of production between each other. Agreements designed are believed to produce gains from trade for all member countries. Trade blocs can be stand-alone agreements between several states (such as the North American Free Trade Agreement (NAFTA) or part of a regional organization (such as the European Union). Depending on the level of economic integration, trade blocs can fall into different categories, such as free trade areas, customs unions, common markets, economic and political unions. In a free trade area, barriers to trade between members’ countries are removed, but each country determines its own external trade policy. Centralizing production in those locations within the area where the mix of factors costs and skills is optimal being practice. In a custom union, internal barriers to trade are removed and a common external trade policy is adopted. A common market is similar to a customs union, except that a common market also allows factors of production to move freely between countries. An economic union involves even closer integration, including the establishment of common currency and the harmonization of tax rates. A political union is the...
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...CGA-Canada and CPA-Australia Renew MRA Introduction The Certified General Accounting Association of Canada (CGA- Canada) just recently renewed their Mutual recognition agreement (MRA). This agreement was first created and signed in early 2008 and now that it has been renewed it will continue until 2018. The MRA offers both countries’ members’ a significant increase in where their accounting techniques are recognized (CGA-Canada). Discussion CPA-Australia’s chief executive Alex Malley stated that “The world is becoming increasingly interconnected.” “Our strategic alliance with CGA-Canada provides an important avenue for both CPAs and CGAs to grow their career in an international capacity (CGA-Canada).” Pat Keller, chair of CGA-Canada boards of directors, agreed with statement made by Alex Malley and added that the MRA is an is an important member benefit of CGA-Canada especially for those members who work internationally (CGA-Canada). These statements tie in perfectly with some of the topics that we have recently discussed in class. I strongly agree that the world is becoming more interconnected and because of this, and many other reasons, we should start pushing more towards allowing our country’s companies to use and accept International Financial Reporting Standards (IFRS). Like the MRA, giving our companies the choice to use IFRS or US GAAP would make it much easier for our multi-national corporations to do things like consolidate their financial statements, enter...
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...making the first offer, this party becomes the offeror. Now the other party (offeree) knows four points: its initial counteroffer, its target, its highest counteroffer, and the offeror’s initial offer” (Frey, pg.99). Positional bargaining focuses on trying to win the conflict, treating it like a football match and sees the only alternatives as win or lose. Each side will have to justify why its position should prevail and the counteroffers will continue until the parties either reach the settlement range or they do not. Moving over to interest based negotiation, if selected, after discussing the problem the parties will move toward a discussion of interests. This will then be followed by listing a range of solutions in the evaluation of each solution against the interests. Once the parties come to an agreement that best meets the parties interest has been selected, the agreement is reduced to a writing and should be as complete as possible. “After the agreement has been reduced to writing, both sides should read and correct the writing before either signs. If the writing is written by one party and signed before the other party has read and consented to it, the party who did not participate in producing the physical writing may have corrections, additions, or deletions that will need to be initialed by the parties” (Frey, pg. 101). 6. As far as the setting/place of the negotiation, the impact it has on the parties of this scenario would be better describe as a Daniel in the lion’s...
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... decision making and also in terms of control and monitoring of their respective units. Decentralization has been chosen to reduce the burden at the corporate level and also to ease the running of the business so that some decisions can be made efficiently without many layers of approving authority. Nevertheless, the performance of the respective decentralized units will still be measured as per the targets that have been set earlier and with the agreement between the top management and the lower level. Also, there will still be some top-‐level management involvement but majority of the decisions made are under the control of the respective decentralized units. As described earlier on the general view of decentralization, we can summarize that...
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...Motors and Ford have formed an alliance in research and development to avoid duplication. These alliances are not only with domestic companies but they also go over national lines. Companies are pushing for integration of the world economy in hope for increased profits and governments are beginning to listen. Since 1986 (GATT) General Agreement on Tariffs and Trade have taken the incitive to move towards the liberalization of international trade. GATT members agreed to reduce tariff and non-tariff trade barriers. From 1986 to the present due to GATT's lead many markets have been open to the United States increasing exports and increasing efficiency through competition. One of the most aggressive liberalization groups to follow GATT's lead is APEC (Asian Pacific Economic Community). APEC consist of 18 countries that account for 1/2 of the worlds output. The three largest economies Japan, China and the United States are members. APEC leaders are committed to achieving free and open trade for the region by 2010. APEC is moving towards this goal through many means including accelerating initial Japanese tariff cuts by 50%. China will also cut a number of tariffs by 30%. Indonesia and other APEC members are also reducing tariffs sharply. What sets APEX at the head of the pack leading liberalization is it wiliness to...
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...only way a country can develop. To what extent do you agree with this statement? Trade involves the transfer of the ownership of goods or services from one person or entity to another in exchange for other goods or services or for money. Trade is seen by many as a way to promote economic and development, with the future aim of increasing the Human Development Index (HDI- composite statistic of life expectancy, education, and income, indices used to rank countries into four tiers of human development) and thus moving further along the development continuum. With expert leg-growth has been the main approach to development, trade may not be the only panacea for development. Other approaches to development such as aid and political avenues also have to be explored. However, the main process to development is industrialisation (manufactured goods create more income than raw materials/primary products) with this we see countries moving through the Clark Fisher model; moving from primary through to tertiary sectors. This increased revenue would promote wealth and improving living standards. In turn, this would make way for the 'trickling down' effect, the increased wealth means surplus money would be available for new industry to be established. Furthermore, this surplus of money may be reinvested into vital infrastructure and increasing the indices needed to value the HDI. Exploring and analysing approaches to development will form the basis of my conclusion. Over the last three...
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