...effective supply chain is to consider the nature of demand for your product. For this many aspects are important: Product life cycle, demand predictability, product variety etc. But any product can be broadly classified into as either a Functional Product or an Innovative Product based on their demand patterns. Root cause for ineffectiveness of any supply chain is the mismatch between the type of product and the type of supply chain. Functional Products are generally staples or those generally bought from the grocery stores or retail outlets. They have stable demands are price variations do not affect the demand drastically. Such products have long life cycles but they invite competition and usually have low profit margins. To have better margins companies introduce innovations in their products like those in fashion, technology etc. The newness of the products may make the demand for these products to be unpredictable. These products also have shorter life cycles, usually a few months as the competitors may erode the advantage by imitating it or coming up with another innovation. These factors further increase the unpredictability of demand for innovations. Also incorrect estimate of demand may hamper the supply chain. For example the demand for IBM ThinkPad was underestimated by the managers as it was an innovation during its launch and hence it was in short supply in the beginning. Due to the above differences both types of products require a different supply chain...
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...According to Fisher, how can products be classified based on their demand nature and what supply chain strategies match to them According Fisher, product can be functional and innovative; Functional serves mostly basic needs, which does not fluctuate over time and has stable and predictable demand with long term product life cycle. Innovative product serves mostly peoples’ want about additional reason to buy something. It is fact that sometimes, things that are for basic needs can become innovative by continuous improvement and innovative concepts. In this case demand is much more unpredictable with short term product life cycle. with primarily functional products, companies should focus on a physical function of supply. They should use an efficient process for supplying (converting raw materials into products effectively and efficiently without waste and transport them along supply chain). As for Primarily innovative products, companies should focus on a market mediation function of supply and use a responsive process for supplying. The main goal of market mediation is that all products to match consumer needs and wants. 2. Describe the Fisher Matrix and explain how managers can employ it to formulate the ideal supply chain strategy Fisher Matrix is system of four cell, with four probable combination of products and priorities. It supports managers to formulate the ideal supply chain strategy with easily identification whether process of supplying matches to the product type:...
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...What is the Right Supply Chain for your product? -Marshall Fisher Summary prepared by Sunny Bhambhwani for Great Lakes Institute of Management Chennai Need for the Right Supply chain Before judging the correct supply chain for your organisation, we first need to understand what a supply chain is. A supply chain is a system of moving a product/service from supplier to customer. It involves organisations, people, technology, resources and activities. Hence, a right supply chain would be the one that not only delivers the product/service to the customer, but also helps the producer match the demand of the product/service to his supply, thereby causing no excess or shortage of inventory. In the current competitive marketplace, a producer cannot afford to lose any customer due to unavailability of the product when the customer needs it, nor can he afford to bear excess cost for inventory surplus which might be unsold for a long time. Hence, deciding the right supply chain is of prime importance in the operational functioning of the organization. Types of products To judge the right supply chain, the producer first needs to identify his product as functional or innovative. A functional product is the one that generally satisfies basic needs, has a long life cycle and has a predictable demand. Basic commodities fall under this category. Due to the stability in the demand, competition is fierce for functional products and hence, producers tend to differentiate their product from...
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...Business Ethics Case Analysis: Apple Finds Human Rights Violation In Supply Chain. Using the 7-step model of Hartman & DesJardins, which helps examining the Impact of individual characteristics and organisational policies on ethical decisions. I will review an article written by the journalist Chilton Tippin on February 17, 2011, discussing the situation that many employees are experiencing, when working with organisations, where their moral rights are not met. According to the article, Surprisingly 8 months after the scandal suicides at Foxxcon’s Shenzhen factory in China, apple continues finding events where human rights are violated. For the first instance “Human rights violations”, would be the main ethical issue surrounding the case, “however”, I consider indispensable starting the research by firstly giving a clear definition on ethics and the importance of its application in business. Besides from identifying the problem of the case and knowing who is fighting against whom, an analysis of the stakeholders is going to be completed to understand what does the organisation mean for the stakeholder and vice versa. Next process would be weighing the options and finding the available alternative routes of action, while searching how they might affect the stakeholders, this with the use of ethical theories to support each of my arguments. Seek guidance would be the next process on the decision making model, which consist in identifying rules and norms setting initiatives on...
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...Agricultural Value Chains in Developing Countries A Framework for Analysis Jacques H. Trienekens Associate Professor, Wageningen University-Management Studies and Maastricht School of Management Hollandseweg 1, Wageningen, The Netherlands Abstract The paper presents a framework for developing country value chain analysis made up of three components. The first consists of identifying major constraints for value chain upgrading: market access restrictions, weak infrastructures, lacking resources and institutional voids. In the second component three elements of a value chain are defined: value addition, horizontal and vertical chain-network structure and value chain governance mechanisms. Finally, upgrading options are defined in the area of value addition, including the search for markets, the value chain- network structure and the governance form of the chain. Part of this component is the identification of the most suitable partnerships for upgrading the value chain. The three components of the framework are derived from major theoretical streams on inter-company relationships and from the literature on developing country value chains. The framework is applied in a case example of a developing country value chain. Keywords: Developing country value chains, research framework, upgrading Corresponding author: Tel: + 31 317 484160 Email: Jacques.Trienekens@wur.nl 51 2011 International Food and Agribusiness Management Association (IFAMA). All rights reserved Trienekens...
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...1. LEGO’s movie-themed products, keyed to popular film franchises such as Harry Potter, Lord of the Rings, and Spiderman, include detailed construction plans. Do you think this is the right strategy? Why or Why not? Justify your assessment of Lego's strategy. To disect whether the inclusion of detailed construction plans in its film-franchised LEGO sets was the right strategy or not, it’s important to start with what the company itself stands for. The name LEGO means “play well”—the focus of the toy manufacturer being “play.” The perennial toy maker has a brand that stands for “self-expression,” and “sponteneity,” and “innovation.” That is, the core of LEGO is not jus that it’s a toy, but that it encourages children to be imaginative and creative with it’s simple interlocking bricks—a child can build anything that he or she can dream up with LEGO products. In fact, LEGO itself recognizes that two of its sources of competitive advantage are creativity and innovation. These are the decisive points for LEGO. They are what make LEGO, LEGO. Creativity and innovation are the product’s differentiators. They are the source of the company’s competitive advantage and, therefore, a key element in the company’s strategy. These differentiators are what propelled LEGO to a peak 85% market share of the construction-toy market. While licensing film francises into its merchandise wasn’t the wrong strategy, including detailed construction plans with those LEGO sets was the wrong strategy...
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...Patil, Yash Robert Tanner 5/11/2014 BIP: Final Paper Time to do the Laundry At 9am on the 24th of April, a textile manufacturing building in Dhaka, Bangladesh collapsed due to oversight from supervisors. 1129 people were killed and an additional 2515 were injured as a result. Many of the higher floors didn’t have permits to be legally constructed[1]. The workers were making 52 dollars a month in wages and lived below the poverty line. The clothes manufactured here would be exported and sold in stores like Walmart. Situations like these exist around the world, but only get recognized when disaster occurs. Businesses are some of the biggest entities in the world. Some companies are even bigger than nations; 50 of the largest economies in the world are run by multinational companies; like General Electrics and British Petroleum which are bigger than UAE and Vietnam respectively[2]. The United States Government does provide 21 billion dollars in non-military aid to foreign countries, but this is nothing compared to the impact businesses can have. The textile industry in America alone generates 248 billion dollars in revenue and employs 75 million people globally. Businesses have the capability to empower workers and improve their mission while creating shared value[3]. What is shared value? CSV or Creating Shared Value is the process of aligning economic interests with societal interests to create value for stakeholders and shareholders. Corporations have taken on CSR or...
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...Introduction In examining, the case study on Crocs; it displays an overview of the company’s objectives in operations to include the supply chain. This examination reveals the success behind how the company thrives in times when others are unable. Part of Crocs leading objectives and primary function is to reinvent the supply chain to provide less shortages and increase awareness and customer satisfaction. This paper will outline a brief overview of company history, Crocs two primary core competencies and in which manner do they exploit them; continued evaluation will cover vertical integration, acquisition, or product extension growth. Further discussion consists of company production and inventory as well, as how margins affect their decisions. History and a Foundation for Core Competencies Lyndon Hanson, Scott Seamans, and George Boedecker created Crocs, INC. in 2002 out of Boulder Colorado. The idea came from a trip taken by the three, where one of them had purchase a pair made from a company out of Canada. The decision to start a business selling the shoes was realized after they leased a warehouse in Florida; when sales took off, they contacted Ronald Synder a college friend who which was employed for Flextronics (electronics manufacture) in an executive position. The addition of Snyder was positive as he helped invent their supply chain strategy (Schroeder, Goldstein & Rungtusanatham, 2011). In historical industry practice, it was commonplace to build orders for...
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...Business as Usual is Not an Option Supply Chains and Sourcing after Rana Plaza Sarah Labowitz and Dorothée Baumann-Pauly April 2014 About the Center for Business and Human Rights at New York University Stern School of Business “At NYU Stern, we develop people and ideas that transform the challenges of the 21st century into opportunities to create value for business and society. Our Center for Business and Human Rights is the embodiment of that mission. By creating a safe haven for open dialogue and convening relevant voices for discussion around practical solutions to some of the world’s most pressing problems, the Center, and by extension this report, demonstrate that profit and principle can co-exist. ” –Peter Henry, Dean NYU Stern School of Business Dean Henry launched the Center for Business and Human Rights in March 2013 with a strong belief in the power of business to create positive change in society. In that spirit, the Center’s mission is to challenge and empower businesses to make practical progress on human rights in their own operations. It is the first center to focus on human rights as an integral part of a business school. We start from the premise that business can and does work for the good of society. We support the goal of business to create value while emphasizing high standards for human rights performance. Each year, we take on a major project around a set of human rights challenges in a sector that is of foremost concern for companies, consumers...
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...increased competition in the frozen foods market. In 1978 their market share of 60% declined to 29%. Private label competitors had gained over 21% of the frozen food market. The increase of stiff competition drove prices down and lowered profitability for Birds Eye. A huge factor in loss of profitability and market stronghold was their internal strategy. The company’s vertical integration strategy worked for in the beginning to initially strengthen their brand, but lost its performance during the 1970's and 1980's. Due to the rising costs of producing frozen foods in the 1970's, and increasing market competition, the company needed to shift to a more horizontal strategic approach. Analysis Value Chain Birds Eye value chain was the chain of activates that it was operated on. The chain of activities gave them more value to its service and its products until early late 1960’s. The primary activities for Birds Eye were inbound logistics, operations, outbound logistics, marketing...
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...For years Barilla was successful in selling their brand of fine pastas but when a shift in demand for products resulted in items being sold out, Barilla tried to operate like a responsive supply chain which did not work for this functional product. Based on Fisher’s 2x2 model Barilla’s supply chain should be run as a functional product with an efficient supply chain. Barilla should run a more efficient supply chain which can be achieved through the use of the Just-In-Time-Distribution (JITD) program; effective communication with the distributor will allow Barilla to retailers with proper stock of goods through more accurate forecasting and sales data. The critical elements of the JITD program employ the use of distributors’ shipment data to send only what is needed to the retailer. Each day the distributor will provide information on what is shipped to retailers and current stock levels of each location; essentially the manufacturer would co-manage the inventory with the distributor. By implementing the JITD program the suppliers would receive the right amount of product due to Barilla’s ability to improve their forecasting through current sales data and provide the necessary product to the distributor. They would also be able to manage the shelf-space and material distribution through the use of vendor-created delivery schedules. This program takes the pressure off the distributor to hold inventory they didn’t carry and increase the stock of items they already had. The JITD...
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...Our E-Commerce Initiative Eminentleather.com is the online retail store which will be initiated with its existing physical retail store. Eminent Leather proudly presents itself as one of the leading innovative and creative manufacturers of premium quality leather products. Through reflecting the latest trend and fashion, we have built our distinctive image among all the fashion conscious men and women of today. The most competitive price and optimum perfection of our products make us superior to the others operating in this sphere. Apart from our own creativity, we also design as per your specification. Eminent Leather is a leading specialty retailer of quality accessories and outerwear. Currently operating under two formats, we offer fashion and value for both men and women. Categories include handbags, briefcases and travel items. Our e-commerce site offers an extension of our store experience and is intended to increase brand awareness. Unique Features of the Business: Bricks-and-clicks is a business model by which Eminent Leather will integrate both offline (bricks) and online (clicks) presences. In our e-commerce initiative we have some unique features like- ubiquity, global reach, richness, interactivity, information density, personalization, and customization. Those unique features will bring a distinguish business opportunity to attract more consumers and ultimately sell the product to them. The features and how they will increase the business revenue are described...
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...Chapter 2 Case Study 1. Corporate Social Responsibility challenges that companies in the apparel industry face in its supply chains around the world: Corporate social responsibility (CSR) has become a subject of increasing significance. Companies are usually faced with the benefits versus harm created by their operations around the world. In spite of the benefits a company may enjoy in their business venture, there are several social downfalls that they need to take responsibility for. Such downfalls include but are not limited to, lack of equality, employee safety & welfare, both of the home countries and the host countries. The opening profile highlighted the subcontracting of child labor by Primark. The case study highlighted the issue of work treatment & conditions by Nike. In addition, workers were underpaid & punished for refusing overtime. At this level, the ethicality of the companies are being challenged, with varying legal and cultural limits across borders. The main question a company should answer is how should their ethical standard be based? Should it based on the home country or the host country or can it be reconciled? If the company ignores its ethical responsibility to workers, how will that affect production and sales? Association in unethical business operations can be quite disastrous to companies. Another ethically challenging aspect is that companies are also limited by jurisdiction. In the instance of the host country, legislations may...
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...decade. In the last 10 years, Wal-Mart has achieved strong and constant growth in sales and net income. It has maintained the leading position in the U.S. discount retail industry and has become the largest retailer in the world. With the maturity of the industry, coupled with the intense competition from rivalry companies, maintaining the current level of high performance becomes very challenging. The Porter’s Five Forces analysis reveals that the competition among rivals is the driving force of the industry, in which price is the most critical factor. The value chain analysis and resource based view analysis show that Wal-Mart has been very successful in implementing the strategy as the low-cost leader by inculcating cost efficiency in its corporate culture, management style, and operations. It has been the pioneer in adopting cutting edge technology to streamline its supply chain, and to understand and respond timely to customer demand. Wal-Mart has developed many strengths that help guard its leading position and open door to many opportunities for expanding the business. However, it also faces threats from growing too big and in many areas, which makes it vulnerable to losing control, weakened cooperation among stores and regions, and competition in multiple fronts. Wal-Mart should be caution in its growth strategy, especially in the expansion of its international presence. Although its financial strength, management skills, and operation efficiency...
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...revenues and profits. Innovation Versus Complexity What Is Too Much of a Good Thing? COPYRIGHT © 2005 HARVARD BUSINESS SCHOOL PUBLISHING CORPORATION. ALL RIGHTS RESERVED. by Mark Gottfredson and Keith Aspinall Walk into the In-N-Out Burger restaurant on Fisherman’s Wharf in San Francisco, and one of the first things that may strike you is the number four. Four colors: red, white, yellow, and gray; four cash registers with four friendly faces behind them; and just four items on the menu. You can buy burgers, fries, shakes, and sodas. All the ingredients are delivered fresh to the store, where they’re prepared in the open kitchen behind the cashiers. You’ll see a few folks eating at the restaurant’s tables or tucking into their food outdoors on patio benches, but most customers come in with a handful of cash—no credit or debit cards, thank you—and head back out with their meals. Four is In-N-Out Burger’s innovation fulcrum—the point at which the number of products strikes the right balance between customer satisfaction and operating complexity. Four means simple purchasing, simple production, and simple service. And, it turns out, in a world where fast-food restaurants are forever adding formats and menu items, simple means harvard business review • november 2005 profitable growth. With its chain of about 200 restaurants...
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