How Adidas Company care about customer equity
In: Operations Management
PLEASE ANSWER AS A TEXT. DON'T WRITE ON A PAPER.
Read the article below and answer the questions. Your answers should be written to address the question in a report format not questions and answers format. The rubrics for assessment is given below.
As the coronavirus crisis deepens in Europe Bo Zhou, CEO of supply chain software specialist FuturMaster, shares insights into managing the crisis and lessons learnt from keeping the cogs turning in China. "Everything that seems normal everyday becomes totally impossible."
The food supply chain in Europe is coming under increasing pressure. On the one hand, manufacturers and retailers are struggling to meet a sudden jump in demand. On the other, they may face new transport and distribution restrictions designed to stop the spread of the disease. While the European Commission has introduced measures, such as dedicated lanes, designed to keep good flowing between member states, food industry associations have reported delays at the boarder that impact fresh foods in particular. Labour shortages and forced factory shutdowns should be expected.
According to Bo Zhou, chief executive of A1 planning software provider FuturMaster, 'many' of the company's clients in Europe are 'worried about the impact on their supply chains'. The company counts the likes of Warburtons, Haribo, Bonduelle and Yoplait among its European customer base.
Covid-19: Prepare with forecasting and simulations
FuturMaster has operations in China, where 'huge' disruption was caused to businesses after the onset of the coronavirus crisis. Official data shows Chinese exports in January and February were down 17.2% year-on-year. For one of FuturMaster's beverage customers saw February sales plunge a massive 80%.
According to the tech company, there is still a 'lot of trepidation' around consumer demand - not least because new confirmed local transmission has started again after the full lockdown put a pause on the spread of the disease. The World Health Organization's latest status report reveals 103 new cases were confirmed in the country, all due to local transmission, on 23 March.
What are the key demand trends that FuturMaster has witnessed? Short-term demand from end-consumers has fallen sharply. Due to so many people being quarantined at home, the geographical distribution of demand has also changed. A lot of demand has shifted online. Understanding how demand is likely to evolve will be crucial if the food industry in Europe is going to meet the needs of citizens, Zhou believes.
"During times of such uncertainty, every company needs to make simulations on how demand may evolve and if and how they can satisfy this demand based on their production and warehouse capacity.
“You also need to closely monitor which transportation routes are cut, or how many workers will be unable to show up at various sites due to lockdown. For many companies in China, the problems were compounded because they don't have the technologies to support these simulations; so they were unable to anticipate demand and supply by looking at multiple scenarios," Zhou noted.
Grappling with food shortages and empty shelves
Panic buying - where many European supermarkets have worked to empty shelves due to stock-piling - is likely to test suppliers 'to the limit'. But spikes in demand are not the only problem food makers in Europe will face.
According to Zhou, sourcing materials may not be the biggest problem on the supply side. Companies will also have to contend with reduced production and warehousing capacities due to labour shortages. When one worker tests positive, the whole team has to be put into quarantine.
Moving products around can turn out to be an issue as well, especially when transportation routes are affected due to border closures. This has clearly been an issue in China. According to a recent McKinsey report, trucking capacity to ship goods from factories to ports is operating at around 60-80% of normal capacity in the country. This has resulted in goods facing delays of around 8-10 days.
"During the crisis, companies need to produce more with reduced resources. This is made possible by optimising the production by reducing set-up times. Manufacturers also need to produce more efficiently: having updated demand planning data allows you to produce only what is most in demand and profitable," Zhou said.
"Anticipating ahead - by doing simulations - enables companies to be better prepared. Being able to react in an agile and efficient way is vital for coping with any crisis situations. "
FuturMaster case study: A 'major' bottled water supplier in China
China consumes more bottled water than anywhere else in the world: around 25 billion
gallons a year, according to the IBWA trade association, which accounts for more than a
quarter of the world's volume.
One of the largest suppliers of bottled water to China - which did not want to be named - has been able to avoid 'severe' stock shortages using FuturMaster's 'sophisticated' supply chain
planning technology to help anticipate and respond quickly to the emergency, the tech group revealed.
The water company has 'numerous factories' it can leverage to adjust capacity based on forecasting of demand and market supply. It was also able to determine which products should be prioritised by taking into account stock on hand in each warehouse and available production and distribution capacities.The timing of the crisis was interesting. Most factories in China were already scheduled to close for a week over the Chinese New Year. At this time, coronavirus cases were threatening to bring Wuhan (where the Covid-19 virus outbreak started) to a standstill. A team of planners at the water supplier were already gearing up and preparing for various possible closures as news of new lockdowns spread. So it looked at the areas likely to be most affected and where else it could produce, and at what capacity. Using FuturMaster's system to make an updated plan for the supply network, the supply chain team tracked traffic restrictions and collected information from local managers to understand labour force trends. "It ran simulation after simulation. It came up with a plan A, B, C, and so on. This foresight and planning meant that it was less likely to be taken by surprise and resulted in continued supplies to almost everywhere."
FuturMaster's A1 allowed large amounts of data to be collected and interpreted, Zhou explained. Modelling different scenarios allows the company to come up with solutions - for
instance, shifting production capacity to different locations to cope with factory closures and transportation disruptions. Importantly, this was achieved at speed.
"In times of extreme uncertainty and volatility in demand, digital technology can certainly make
sense ofa multitude of data, quickly and optimally. This requires a supply chain planning too
that's highly flexible and data-driven. Ideally, you need to be able to manage as many variables as possible to get more accurate forecasts on demand and optimise the supply accordingly. It's
something that would normally take days to do manually. And a machine is often much better
than humans at crunching numbers and making decisions from wades of information. "
Managing disruption and re-thinking logistics
Zhou does not downplay the level of disruption coronavirus will bring to food and other businesses in Europe. "Everything that seems normal everyday becomes totally impossible," he stressed.
"For many businesses, you might need to find another logistics network. You have to focus on where's the best factory that you can produce in and look closely at costs and feasibility. All the normal variables that supply chain planners use on an everyday basis become uncertain and questionable. But you can act with foresight to mitigate risk.
"In times of panic - and against a backdrop of empty shelves - some digital technology can be used to avoid a crisis. Digital technology can help make better decisions afterwards and prioritise things whenever there's a choice to be made," added Zhou.
In: Operations Management
Explain value-defining, value-developing and value-delivering processes in KFC company
In: Operations Management
1.In BBC Airline, a training program on improving customer service was given to flight attendants in response to the increasing customer complaints. However, when the trainees are back to the workplace, most of them have not served customers as expected in the training. To make transfer of training possible, you are required to:
(a) suggest what should be done by the organization and
(b) discuss how the training should be designed.
2.A two-day workshop on improving communication skills will be given to 30 salespersons in three fashion outlets of J&J. Half of them have the requisite skills of active listening. However, the other half are newly recruited and have just graduated from high schools. They know nothing about this area. To save training costs, both the new and existing employees have to attend the workshop together. You are required to:
3.In B&B Café, a two-day workshop on effective feedback skills will be given to 20 managers. It is focused primarily on performance reviews. To ensure that the training program can achieve its objectives, you are required to:
4.The increasing number of competitors, which leads to the decline in the business profits of ABC Restaurant, has been brought to the attention of a senior manager. He believes that training should be given to regain the market lead in a highly competitive market. You, as a training manager, are approached by him for assistance. In a meeting with him, you are required to:
a. discuss the type of training needs analysis relevant to the situation and
b. elaborate how data are collected to analyse the training needs.
In: Operations Management
Q1. Explain what companies should do to make employees contribute towards the strategic management process in the organization.
Q2. Why do many organizations fail to implement plans successfully?
Q 3&4 : Case: Maestro Pizza
Entering the food industry nowadays became harder than before. The people now pay extra attention to even small details when it comes to food. The variety of food kinds, the way the food being served, the quality of food, the price, and even the place decoration! Furthermore, there are tons of restaurants (competitors) those being in the food industry for decades which makes it even harder to compete with them. Not to mention if a new restaurant will serve one kind of food that already being served by other expert restaurants.
Here we talk about a new restaurant in Saudi Arabia that successfully entered the food industry and managed to compete existed restaurants who are serving the same kind of food for a long time and even considered the best in the world of serving such food! The restaurant's name is Maestro Pizza which is locally founded and operated by Saudi people. This restaurant has successfully dominated the market and stole the throne from underneath of many other pizza restaurants like Pizza Hut and Domino’s Pizza and others.
In the context of the above case analyze and provide solutions to the following questions:
Q3. Bargaining power of consumers.
Q4. Suggest strategies to differentiate Maestro Pizza products and services with its competitors.
In: Operations Management
why taxpayers must have insurance?
please explain as much as possible
In: Operations Management
Think of a team that you are on or have been on recently. How does it stack up against the criteria for quality teamwork? What specific steps could be used to improve the performance of your team? How could TQ techniques be used to improve team processes?
In: Operations Management
A firm uses graphical techniques in its aggregate planning efforts. Over the next twelve months (its intermediate period), it estimates the sum of demands to be 80,000 units. The firm has 250 production days per year. In January, which has 20 production days, demand is estimated to be 8,000 units. Which of the following is correct?
In: Operations Management
What can we explain first order change and second order change in a global support organization? Justify with detail examples of the change efforts.
In: Operations Management
1. Conflict can actually be useful for organizations. If you wanted to encourage competition in order to motivate better performance, which of the following would you do?
Pay everyone the same regardless of rank or performance.
Throw a company party.
Create a contest to reward the group member with the best performance.
Match employees in small teams by personality type.
2. 3M allows employees to spend 15% of their working time on projects that they feel passionate about. Sometimes there is more interest than roles to play on the respective project teams. If, as a manager of one of these special teams, you chose to make volunteers compete for the right to work on your team, which conflict management approach would you be using?
Resolving conflict
Eliminating conflict
Stimulating conflict
Controlling conflict
3. If your group is experiencing a source of conflict and you wish to approach the resolution of that conflict in a confrontational manner, which conflict resolution approach would you use?
Interpersonal problem solving
Compromise
Avoidance
Smoothing
In: Operations Management
MANAGE RISK
Activity 7
Outline how you would gain support within the organisation for risk management policies and procedures? What skills might be used when garnering support and with whom should you communicate the risk management intentions? (Minimum 150 words)
Answer in your words
In: Operations Management
You are the CEO of a large, name-brand consumer packaged goods
company. Some of your most well-known products include frozen
foods, bottled drinks and juices, salad/food dressings and snacks.
You have garnered considerable success in the domestic U.S. market,
where you have commanding market shares in almost all of your food
categories. On a recent trip to the international foods convention
in Vegas, you meet with some investment bankers who are following
your company's strategy and day-to-day events. They point out to
you that they would like to see you continue to sustain the high
growth rate of your company. In fact, they believe that an
important way to continue growing is by entering new overseas
markets. You concur, and are willing to hear what else they might
have to say. The bankers realize you are somewhat risk-averse, as
you are unwilling to make an outright acquisition of a company in a
market or region with which you are not familiar. However, they
note that are two potential alliance partners who would like to
talk with you. Both of these companies are in the same industry as
you, so there is no issue of industry-based friction or tension. On
the other hand, the two prospective firms differ from each other
along some important dimensions.
The first company (call it A) is small, managed by a young and
enthusiastic management team, but is comparatively new to the food
business. In fact, the young leader of company A claims to have
read about you in airline magazines and other business
publications, and he/she aspires to build the same kind of company
that you did. He/she looks up to you and is excited that you are
considering his/her company as a potential partner. Company A is
well-situated in an emerging market that looks promising, but is
already well-represented by the operations and subsidiaries of
other highly diversified, multinational food firms. Most of company
A’s business is dedicated to providing bottled drinks to its own
emerging market. These bottled drinks are wildly popular, and you
are thinking that they could be exported to other similar emerging
markets (and even the U.S. market) if the conditions are right. The
bottled drinks business offer you a nice way to get into A’s
emerging market, where you can contribute important skills, but you
are concerned that the A’s facilities are not quite up to your
quality standards. An additional factor to consider is that the
transportation infrastructure in A’s marketplace is uneven, raising
the possibility that freight damage could occur, as well as
perishability, due to the limited shelf-life of bottled drinks.
Company A prefers to work with you in a joint venture format where
the both companies form a third-party entity that would serve as
the nerve center and operations base of the alliance.
The second company (call it B) is large, and highly diversified in
many food businesses. It is almost two-thirds (2/3) your size and
has been around for almost thirty years. It has a long history of
working closely with the government in its marketplace, and at one
point, was owned by the government before it was privatized.
Competing in a free-market economy remains more of an abstract,
than a real, tangible concept. In fact, company B is often a place
where departing government officials often call home, since there
are many ties with B’s management that were developed over time.
Company B’s management has a marked tendency to look towards its
central government for “guidance” on how it should compete. As
such, the company has not evinced a high degree of urgency for
profitability nor for perfection. Although B owns a number of
modern, state-of-the-art bottling and food processing facilities,
they are all heavily unionized, and workers are worried about
competing in this post-privatization environment. Company B offers
you a wide variety of possible joint food-related projects within a
broad alliance, and B’smarketplace is only now beginning to be
discovered by other multinational firms. Transportation in B’s
marketplace is somewhat better, but company B has relied
exclusively on its own set of suppliers for bottles, cans, labels,
and bottle caps for a long time. There are few other suppliers of
these inputs to B in that market. Company B, however, does not want
to work in a joint venture alliance format with you. In fact,
company B insists on a co-production arrangement that does not
involve any type of third-company formation, equity sharing or the
like.Being somewhat of a cautious person, you choose to investigate
allying with only one of the two potential partners. Financing is
easily available.
Based on the notion of differing perceptions of time, how does Company A appear to think? Also, how does Company B appear to think? What makes each company “tick?”
In: Operations Management
Manage risk
A8.2
Why should employees be invited to participate in risk management consultations? (100 words)
Answer in your own words.
In: Operations Management
You are the CEO of a large battery company that has a long and
famous history in the design, manufacture, and distribution of
different types of batteries that are used in a growing variety of
industries. Your company is organized into two strategic business
units.
One business unit (Business Unit 1) specializes in high-end
batteries for critical systems. Some of your best known batteries
are used to power cardiac pacemakers (heart implants), kidney
dialysis systems, portable diabetes treatment systems, and even
space-based life support systems (electronic monitors). Many of
these batteries incorporate the use of highly exotic, rare-earth
materials whose specific compounds and mixtures are highly
proprietary to your company. Your patents (as well as your
distinctive way of experimenting with materials) have pretty much
given you a lock on this part of the business. These exotic
batteries represent the highest form of technology development and
refinement that your competitors respect and consider as beyond
cutting-edge science. Several executives from the automotive
industry have commented that these advanced batteries will do much
to boost electric-powered vehicles in the near future, but only if
you can scale the business and drive down unit production costs. As
such, it has been difficult for other battery companies to imitate
what you are doing. As a constant worrier, you feel that your
competitive advantage lead-time, while impressive, seems shorter
than you would like. Your R&D skills and depth are excellent,
but you feel as if your manufacturing process is
missing something, since you have typically experienced a long
glide-path in reducing your unit costs with every new battery
size.
The other business unit (Business Unit 2) is better known for its
well-recognized battery brands that used in long-lasting,
conventional lithium-ion and alkaline batteries for a broad range
or devices, including watches, cell phones, and even laptop
computers. Customers love your batteries because of their
long-lasting qualities, but they pay a price premium for your
offerings. Unlike that of some of your competitors, your lithium
batteries are high-quality and do not pose the same degree of fire
hazard in laptop computers and smartphones. The extra safety
feature is a tribute to your company’s high ethical standards in
development and manufacturing, but it also means that your unit
costs will probably remain higher than that of rivals. However,
Business Unit 2 is beginning to face growing competitive pressures
from other manufacturers who are seeking to erode your sizable
market share. You are not excessively worried about your
competitors yet, but you realize that the battery industry has
become significantly more capital-intensive over the years.
Business Unit 2 has significant brand equity that captures much
customer loyalty, but here too, you begin to wonder how long you
can keep charging a price premium for lithium batteries –
especially given the rise of new, ultra-modern manufacturing
facilities in the Far East that compete on scale and volume.
A year later, your company has been approached by a smaller battery
company (call it X) based in Asia. They approach you with an
informal request to begin investigating the possibility of working
together on advanced battery technologies. Although you have heard
about the company from attending industry conferences in the recent
past, you never thought that X was a serious player in the battery
or power systems business. Most of the business for X has
traditionally come from making standard alkaline batteries that are
included in remote controls for television sets, telephone
answering machines, small portable electric fans, low-end digital
cameras, and other low-cost, mass-produced consumer electronics
products. Since X makes standard alkaline batteries for other
manufacturers, they really have no brand equity at all, as they
have never sold directly to consumers. On the other hand, X just
recently completed building a large battery manufacturing facility
that is designed to provide a wide range of low-cost batteries to
all types of consumer electronics companies. From what you hear at
industry conferences, X hopes to serve not only its traditional
corporate customer base (portable television manufacturers, phone
manufacturers, and digital cameras), but also companies that make
high-end digital watches, laptop computers, tablets, and portable
DVD players used in long airline flights. X has said nothing about
what its new manufacturing facility can do, but there is strong
reason to believe that X has the talent and the machinery in place
to produce both alkaline and lithium-based batteries. Even more
uncertain is how well X can formulate the necessary chemical
compounds and mixtures that are needed to produce the right balance
of smooth, sustained power flow for long-lasting but stable battery
life for higher-end products. Little is known about X’s
manufacturing skills as it relates to quality control and battery
safety features either. Yet, X is determined to push ahead since it
wants to become the battery source to all kinds of businesses.
Since most consumer electronics companies are outsourcing non-core
operations to improve their own internal measures of financial
efficiency, many of them have decided to use X’s batteries rather
than to make them on their own. You have also heard rumors that
management at X is also anxious to expand beyond the alkaline and
lithium business segments to move up the power systems food chain.
X’s young CEO even drives a prototype
electric vehicle made by Tesla, but claims that on some day, at
some point, he/she could beat Tesla in its own game. Because you
have some lingering doubts about the depth and sophistication of
X’s management team and technology, you politely decline the
opportunity to work with X.
Six months have passed, and you are invited to lunch by a friend
and former executive who now works at a medical device electronics
firm (call them MECO) that builds external portable diabetes
monitoring systems and external portable cardiac defibrillators, as
well as high-end implantable cardiac pacemaker devices that are
installed in the patient by hospitals and doctors. MECO’s external,
portable medical products are designed and sold for the consumer
market, not for hospitals or long-stay medical facilities. They are
particularly well-suited for consumers who are caring for loved
ones in the home, where portable medical devices may be needed as a
stopgap measure before emergency help or professional help arrives.
(Think portable defibrillators that should be in every section of a
high-end steakhouse restaurant!) At the lunch meeting, MECO is
interested in purchasing large quantities of your most advanced,
proprietary, exotic-material batteries for use in their newly
designed, implantable cardiac pacemakers. Having worked for you a
long time, your friend knows that you have the best scientific
reputation and skills in batteries to back up your products. As the
conversation lingers, he/she also tells you that MECO has
dramatically improved its power system efficiency and maintenance
costs for its external portable defibrillators several quarters
ahead of schedule. You asked how they were able to accomplish this,
since working with portable medical technology requires a different
set of manufacturing skills (e.g., lower cost, long production
runs, specialized proprietary techniques) than those used for
implantable cardiac products made for use in hospitals (e.g.,
small-quantity, custom-order, but higher unit-cost production).
He/she responds by saying that MECO has contracted out most of
their battery manufacturing to a company called X, and that they
were instrumental in helping us figure out how to best manage power
consumption and drainage issues in electronic devices.
Your friend tells you the following: The alliance is structured in
a serial manner whereby X initially provides the battery, and MECO
does the rest. Increasingly intrigued and simultaneously perturbed
by what you hear, you ask for some more specifics about what this
relationship is all about. He/she tells you it works like this: You
concentrate your effort on designing the latest medical device
technology and focusing all of your efforts on making sure that it
can work in a variety of different environments (e.g., climates,
temperature, altitude, humidity). Once you have finalized a robust
portable defibrillator design, you provide it to X, who in turn
manufactures the batteries according to the size, weight, and how
long you want the defibrillator to keep running. He/she has visited
X’s battery manufacturing facility, and tells you how marveled
he/she was: “These people are able to run such a tight ship – their
cost management and yield improvement skills are top-notch. The
batteries come out perfect without any seams, leaks, dents, or
irregularities on the surface. Yet it is difficult to isolate which
department within X is responsible for which activity it does. The
external coating of the batteries can take a beating. It’s almost
like they can coax more out of their equipment without compromising
quality. We could not attain the same kinds of battery durability
and sustainability in our own factory. It seems like everything
related to quality in their facilities is so seamless or
interconnected that it is difficult to know where one set of
competences end and another begins. I don’t know how they do it,
but it’s not obvious that we could duplicate it on our own.” X
ships
the batteries directly to you, and is even willing, for an added
fee, to build the surrounding surge protectors, voltage regulators,
transformers, and a few other components that are integrated with
the portable defibrillator’s power system to complete a good deal
of the end product. What X cannot do is to design the actual
microprocessor “brain” that controls how all of these components
are integrated together in the actual medical device.
You have decided to investigate the possibility of working with X on a limited project in the battery field. You think a joint venture would work best with X, and you are willing to contribute management and technical oversight from Business Unit 2. You want to begin working together on a battery that is already mature (for reasons of simplicity, assume it is a lithium-ion battery used for watches and cell phones). In your initial negotiations with X, you propose that they contribute funds to the joint venture that would house a jointly-owned plant in the U.S. so that you don’t have to wait for the battery to be produced and shipped from X’s far-away Asian factory. The negotiating team from X looks at you in a funny way, but in turn, proposes its own counter-offer. X does not want to build a battery factory in the U.S., but in turn has proposed to work with you on a more advanced line of batteries – some of which use exotic, rare earth materials in the core. According to X’s management, they prefer an alliance vehicle “that is not so elaborate and formal like a joint venture.” In fact, they would prefer something along the line of a co-development pact. Keeping your answer short, what would be some of the important points of negotiating with X? What are some key issues that you need to consider? How would you frame them in your proposal? What are some key issues that X is probably considering? How will these issues show up in X’s proposals? (Provide your answer and supporting rationale in a table for both companies using short bullet points.
In: Operations Management
URGENT, please answer.
In: Operations Management