Logistics Efficiency/Value Chain Sample with Possible Problem Solutions.

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Assignment Question 1 1.1 Value chain model. Value chain Support activities Firm infrastructure Vision – at the start CO-founders E.Hansens vision was to establish a family business that could be passed down the generations. Unfortunately this vision weren’t meant to be so after he retired he just sold the company. PROBLEM 1 – Since then new vision haven’t been developed. Goal – to sell high durability, high quality furniture in acceptable prices. Strategies – analysing previous years sales and results to plan production and supplies needed for upcoming year/season. PROBLEM 2 – The directorial team together with management team are having major problems in deciding which basic strategy to use for supplier management and which criteria to use for supplier selection. Organisation principles – Hierarchical organisational structure - two-man directorial team consisting of Tobias and Andrea, who take care of the company’s overall strategy and economy. Procedures – The most critical and important decisions according to companies overall strategy are decided by directorial team which consists of Tobias and Andrea. Day to day operations are left to management team which consists of Fatima, Adam, Mikael and Hans. Sharing of knowledge – not mentioned. Physical location - Production is located in Nyborg. NF products are sold from about 30 locations in Denmark, 60 locations in the other Nordic countries (Norway, Sweden, Finland, Iceland and the Faroe Islands), and 100 locations in the rest of Europe. Legal setup – not mentioned. Human resource management Open/closed organisation - Open organisation. Motivation – cash bonus to those groups in production that achieve the highest efficiency and quality scores. PROBLEM 3 - My opinion is that management teams view on competitive spirit is wrong. This is because all departments of

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