On the same note, it is well acknowledged that the competitiveness of any organization fundamentally depends on the workforce. Indeed, the workforce is recognized as the heart or living organism of any organization including hotels. It goes without saying that there is minimum likelihood that a restaurant where workers operate in unsafe conditions or are mistreated will offer services and products of the highest quality. Scholars note that employees always desire to work in institutions or restaurants that have high standards of integrity and strive to do the appropriate thing (Fox & Vorley, 2004 pp. 33). This is especially so for the new generation workforce, as well as in attracting the best talent in the industry. A reputation for responsibility and integrity has been recognized as crucial in motivating, as well as recruiting staff especially considering that individuals care about the principles and values that their employers wish to uphold. Scholars note that operating voluntarily to high ethical standards pertaining to environment and social responsibility can result in competitive advantage (Schlegelmilch et al, 2004, pp. pp 254). Customers and civil society groups have been increasingly vigilant in determining whether there is an ethical lapse in the manner in which employees are treated within the supply chain of any organization (Fox & Vorley, 2004 pp. 33). In fact, they have been pressurizing restaurants and other business entities to cut ties with any organization in their supply chain that is not ethical in its treatment of employees. Scholars note that the impression that a restaurant or business entity would create in terms of public relations both on the stakeholders and the customers is highly dependent on the ac... ... middle of paper ... ...mall quantities for a shorter period of time. This has increased efficiency and consistency as well as made it possible to apply some of the business strategies like just in time to solve the manufacturing process issues. How the supply chain can help a company reach its strategic goals • Increase in profits- It can lead to increase in the quantity produced, this will increase the revenue earned and consequently the profit will be ploughed back. • Cost effectiveness-Increase in quantity produced due to a proper flow of raw materials will allow the firm to enjoy economies of scale and be cost effective; the costs of production will decrease with increases in quantity produced. • Increase in customer satisfaction- constant supply of the products ensures there is no deficit and creates a clientele base that has a well structured and satisfied market.
So when there is a decrease in the number of workers employed, there is a decrease in output, hence both the marginal cost curve and the average variable cost curve will decrease. The results are a decrease in total cost. It can be concluded that a short-run change in a factor of production, namely the variable factor labour, decreases the costs of the SABMiller more than the level of their output, and therefore aids in maximising profits.
...nufacture its products more quickly and with reduced labor costs while maintaining the desired quality standards.
Effective organizations are able to clearly define their ethical expectations by setting high moral standards, writing codes of conduct, and utilizing mentoring programs. “Masters provide your servants with what is right and fair, because you know that you also have a Master in heaven” (Col. 4:1). When organizations clearly define their ethical expectations to their subordinates, they are much more likely to treat their customers fairly. Customers who are treated fairly are much more likely to be loyal consumers of the products or services that the company provides. This helps to establish a loyal customer base that a business can depend upon, thus providing a predictable source of annual revenue. If an employer treats their employees with respect, honesty, and with candor they’ll give the customer 110% (Rion, 2001).
Benefit for the customer to remain involved at all stages and for their voice to be heard.
costs down and the quality of the products as high as possible. Since the most
By reducing their operating and capital costs they were able increase volume expansions from high quality
the inherent supply chain in this industry, which is done through encouraging the collaboration of all these elements in a given project. Some of the unique barriers in the process have been discussed below-
The Home Depot Supply Chain Management model is based on integrated inventory management through a centralized network of 20 distribution centers, called Rapid Deployment Centers (RDCs) and three Direct Fulfillment Centers (DFCs) aimed at the e-commerce market (Bond, 2015). Orders are processed and managed to meet current and forecasted demands, sent to the regional RDCs, which service approximately 100 stores each, and sent to retail outlets to meet stock requirements (Bond, 2015). Direct Fulfillment Centers are e-commerce distribution systems. Home Depot delivers within a two-day timeframe to 90% of US based customers, and the system also leverages in store stock for same day pick-up (Bond,
Three concepts that can be applied to this question are elasticity of demand, cost-benefit analysis, and Keynesian economics. Elasticity of demand has to do with price change, and the sensitivity level that is associated with certain price changes. Generally, when the price of a product goes up, people do not demand as much as this product as they did before. The magnitude of how much the demand rises or drops due to price change is the elasticity. As for cost and benefits, it is understood that in economics, a company is to begin and proceed with their production as long as the costs do not outweigh the benefits. An analysis of the cost effectiveness of different alternatives in order to see whether the benefits outweigh the costs is an integral part of every company, and this concept can also be app...
Based on the information provided in the case there were a few viable options in regards to expanding the business. However, many of them were resolved within the case. Fortunately enough, there were a few ends left untied specifically related to Zappos’ supply chain. In their supply chain they dealt with many inefficiencies that go beyond their organization.
Apple has launched some of the most iconic pieces of technology in the 21st century. They have not only repeatedly been named the top technology company in the world, but have also been named the World’s Most Valuable Company dozens of times. Currently, it is ranked at number two as it trades the title back and forth with Google/Alphabet consistently. A global valuation of over $700 million makes Apple a major driver in the global economy through both sales and product manufacturing. Although a technology giant, Apple does not have a massive portfolio of product offerings, instead focusing on upgrading products within its current market segments. The iPhone is one such product and it has quickly become a symbol of all things Apple with global
Sustainability of the supply chain has increasingly become a crucial aspect of corporate responsibility. Apart from being good for business, management of social, economic, and environmental effects of supply chain remains the right thing to do. Constantly changing markets have created complex landscapes that businesses must navigate to build sustainable supply chains. Sustainable supply chains aim at creating social, economic, and environmental value for all stakeholders throughout the supply chain. Building sustainable supply chains not only benefits the stakeholders but also aims at safeguarding business interests. Businesses can easily become sustainable by understanding who they are and working closely with people. Nestle is company that has been at the forefront in advocating for sustainable supply through the ‘creating shared value’ platform. The report makes recommendation on the role of supply chain management in attaining sustainability.
Every company has some kind of Revenue and they all have costs that are associated with running the company. It is also true that if a company wants to increase their Revenue, their costs will increase too. It is every company’s goal to maximize revenue and either through Production or Services, and minimize cost. These things are easy to figure out, but actually identifying the production and figuring out how it will increase or decrease with change is very difficult.
1. Every organisation in both the public and private sector is in varying degrees dependent on materials and services supplied by other organizations (Johnson and Flynn, 2015:36-37). In your view, what role can supply play in determining an organization's strategic growth?
When businesses start making money, the upper management focusses on maximizing speed, but when the economy is bearish, companies try to minimize supply costs. But there is an issue with this approach, companies who become more efficient and cost-effective, they do not gain a sustainable advantage over their rivals. What gives supply chains of Dell, Amazon and Wal-Mart, the edge over their competitors is not their efficiency but differentiating characteristics such as agility, adaptability and aligning the companies with sustainable competitive advantage.