Deleting players from the distribution chain can be risky, but results in a reduction in operating costs and improved margins (Strickland, 1999). Dell’s focus is listening to the customer and providing a service that provides the needs and wants of the customer. Michael Dell encountered resistance in his management teams. The management teams forced their views and opposed to listening to what the customer wanted and needed (Krames, 2003, p. 59). Dell survived the technology bust of 2001, and improved the company’s market share by providing a better-quality product and beat the competitors through quick delivery and meeting the customer needs (Krames, 2003, p. 63).
As a result, SBI tailored a unique set of strategies and tactics. First, SBI identified an underserved segment of the target market and pioneered a doughnut that met USDA guidelines and still tasted good (Davis & Darling, 1996). Second, SBI updated packing techniques to include the use of refrigeration and vacuum sealing methods. This permitted shipping nationwide, thus penetrating a previously fragmented market (Davis & Darling, 1996). Third, SBI developed ways to assist its customers including helping customers get lower prices by using government-supported commodities, cooperating with noncompeting suppliers, and helping distributors reduce inventory carrying costs and avoid stock outs by using just-in-time delivery (Davis & Darling, 1996).
The CEO of Cypress Semi Conductors, Tim Rodgers, also has the same view as Freidman on CSR (Rodgers, 2010). Rodgers (2010) argues that if organisations become more socially responsible, this will reduce companies’ profits and shareholders will feel the impact by reducing profits. John Mackey, the founder of Whole Foods, has the opposite opinion to Freidman and Rodgers’ views on CSR, as Mackey believes that the main reason of a business is to create value for its stakeholders i.e. customers, suppliers, employees, and the community it is in (Reason, 2005). In contrast again Freidman continues to argue that the social responsibility of a business is to make money and not to serve other social ends (Beesley and Evans, 1978).
Second, the production manager used operating method, namely transfer expenses to capitalize costs, to significantly decrease the current cost of goods in 2009, which lead to the planned and actual gross margins are close. For Sports & Energy Drink Division First, managers of all departments used accounting methods to meet sales requirement. The division had shifted some sales in 2007 to sales in 2008, established accounting reserves and prepaid some expenses would be incurred in 2008, all of these measures guaranteed to achieve planned goals of 2008. Second, managers offered customer discounts and liberal payment terms to prompt sales. Above all indicates some problems exist in Fit Food, Inc. financial reporting.
JITD is being considered to improve operations for both Barilla and their customers, by determining the quantities and delivery schedules, rather than current approaches and procedures of responding to erratic demand patterns. This would help with eroding margins that both manufacturers and retailers are experiencing, by shipping product only as needed rather than holding large quantities of stock in both Barilla’s facilities. What are the underlying causes of the difficulty that JITD is expected to solve? The underlying causes of the issues that JITD is trying to resolve are: • Issue: Erratic demand / poor forecasting, which is driven by: o Manual process at the retailer level of both checking and conveying inventory needs o Customer behavior, which is driven by outside forces, such as competitors’ offerings, incentives, trends, etc. o Barilla’s own sales incentives drive erratic trends in purchasing large quantities (driven specifically by bulk discount incentives) • Issue: Inventory limitations and distribution centers and retailers, which are driven by: o Physical space limitations (shelf and floor space) o Competition’s need for space, incentives to retailers and distributors, etc.
Inbound Logistics Inbound logistics is defined as a primary activity, and consists of receiving, storing and distributing inputs of a product. It also includes material handling, warehousing, and inventory control. (Gregory G. Dess, 2012) By closing seven manufacturing sites, and streamlining its product offering to smaller, more fuel-efficient vehicles, Mulally led Ford to cut costs in its inbound logistics areas. A smaller number of manufacturing plants in a period of recession and company losses equates to essential money saving measures. One example of an inbound logistics improvement Ford made during this time period was written about in Automotive Logistics in May 2009.
The core benefit of McCain Original Oven Chips is to satisfy hunger, which meets basic consumer needs. The actual product offers features to satisfy consumer wants including: a healthy option, quality, brand and packaging. The packaging contains the brand name, slogan, traffic light scheme, GDA and ingredients, which are important in communicating the benefits to consumers such as quality and healthiness. The brand and slogan are also important because when overloaded with
Some examples are as follow: • Industry patents • Recognizable brand • Good customer service • Cost advantages over competition • Use of natural resources or organic food options • Robust distribution network Weaknesses are defined as what limitations your business has compared to others in the industry. The absence of certain strengths may be viewed as a weakness. Some examples are as follow: • Lack of industry patents • Un-recognizable brand • Poor customer service • Higher costs than competition • Limited use of natural resources or organic food options • Limited distribution network and market share Opportunities are defined as what might be available to your business as a way of promoting your product or providing an advantage over your competition. Some examples are as follow: • Customer needs • Use of new technology • Lifting of restrictions • Ability to trade internationally • Only business in that location offering your product or service • New location that needs your product or service Threats are defined as anything that may take away some of your customers or market share. Some examples are as follow: • New products entering the market • Change in customer preferences • Substitutable products • Federal or state regulations • Inability to trade internationally • Inability to meet
Abstract This paper is discusses the Milton Friedman Theory and how it applies corporations and the government. It will also discuss the responsibilities of firms and the government and whether or not they play a role in the expansion the Friedman Discussion. Milton Friedman Goal of the Firm Milton Friedman is a noble prize winning economist whose philosophy on corporate social responsibility (CSR) has shaped the business world today. Friedman believed that businesses only social responsibility is to utilize resources and engage in activities that would maximize profits without the use of deception or fraud while conforming to the basic rules of society (Friedman, 1970) . Executives are hired to act as fiduciary agents of their stockholders for the purpose of increasing wealth (Smith, 2003).
The law proposed by France in making the fast-food companies to either advertise with healthy food messages or be taxed by 1.5% on their ad budget was a bold but a very reasonable move. This can eventually make the food companies be more aware and cautious on their products that could lead a way in creating more sensible contents not only in advertising but also in their product developments. A more sensible and vigilant McDonald’s was a result of this proposition. As it turned out, McDonald’s developed and created healthier food choices for their