Crafting & Executing Strategy 20th edition text book, under Assurance of Learnin
ID: 345586 • Letter: C
Question
Crafting & Executing Strategy 20th edition text book, under Assurance of Learning Exercises on page 249, question number 1, Bloomin’ Brands.
Identify the value chain relationship that make the business of the following companies related in competitively relevant ways. Consider whether there are cross-business opportunities for;
1). Transferring skills and technology,
2). Combining related value chain activities to achieve economies of scope, and/or,
3). Leveraging the use of a well-respected brand name or other resources that enhance differentiation.
-Outback Steakhouse
-Carrabba’s Italian Grill
-Roy’s Restaurant (Hawaiian fusion cuisine)
-Bonefish Grill (market fresh fine seafood)
-Fleming’s Prime Steakhouse & Wine Bar
Explanation / Answer
Suppliers can be an important source of information on ways in which both small and large businesses can improve their performance and productivity. There are 5 general categories exists in which the supplier involvement can help the buyers to compete in the marketplace :
1. Improvement in the product quality - In addition, to providing design recommendations that can result in the improved products, suppliers are often sources of suggestions that allow buyers to hold consistent tolerances in the production.
2. Improvements in 'Speed to market' - Some of the most significant contributions in this area came from suppliers to the original equipment manufacturers.
3. Improvement in the customer satisfaction.
4. Reductions in the total product cost, either through streamlining of work processes (inventory management, new product design, scheduling, etc.) or replacement of the costly components with less expensive but still effective ones.
5. Improvement of the products through contributions to the product design, technology, or ideas producing new products.
Evaluating Suppliers -
Some of the factors evaluating suppliers are -
1. Cost-competitive - Competitive pricing is a huge factor especially for the small business that usually faces financial difficulties.
2. Communication - Suppliers that do not maintain a policy of open communication should be avoided at all cost.
3. Timely Service - Business's strategies are predicted on schedules, which in turn are based on receiving shipments slip, business strategies suffer.
4. Market Knowledge - Supplier with the immense knowledge of market products are valuable for small businesses.
5. Logistics/ Location - Supplier's capabilities include transport capacity, sourcing capabilities, and 'just-in-time' performance.
6. Flexibility and Special services - /many purchasers appreciate the suppliers that take extra measures to satisfy their customers.
7. Ability to provide technical assistance - Suppliers with top research and development capacities can be valuable to the buyers, providing them with significant savings in both price and quality.