OPENING CASE STUDY QUESTIONS the implementation t Evaluate how Apple can gain bu
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OPENING CASE STUDY QUESTIONS the implementation t Evaluate how Apple can gain business intelligence through the implement customer relationship management system. Create an argument against the follovwing statement: "Apple should not invest resources to build a supply chain management system." Why would a company like Apple invest in BPR? Got Milk? It's Good for You- Unless It Is Contaminated! Chapter Three Case: Dong Lizhong, a farmer and migrant worker dairy farmer in China, bet that being a dainy farmer was his golden ticket out of a factory job. Unfortunately, a contamination crisis shattered his dairy business when babies mysteriously started developing kidney stones from contaminated baby formula. A chemical called melamine--an additive used to make plastic-was discovered in the milk supply of China's third-largest dairy producer. Trap cally, four infants died from the contamination and at least 53,000 fell ill According to the official Xinhus news agency, officials knew about problems with the milk for months before informing the public. China's four largest dairy organizations, accounting for nearly half the country's mik mar- ket, pulled their goods off sheives. More than 20 countries, including France, India, and South Korea, banned not ony dairy products from China, but also candies, cookies, and chocolates This is a dis astrous setback. I estimate that it will take one or two years to rebuild confidence in dairy products, says Luo Yunbo, dean of the College of Food Science and Nutritional Eng neering at China Agricultural University The local milk-collection station in Dong Lizhong's village has discontinued purchas- ng milk. Farmers are continuing to milk their cows, but they now drink the milk themsolves or "feed the caubages-pour the milk in their cabbage fields. Dong estimates that he has already lost $1,461, or a quarter of his annual income last year, in expenses to feed corn and fresh grass to his 20 dairy cows. "Unless someone starts buying milk, we're going to see a lot of cows being slaughtered very soon," states Dong. Cutting Corners Chinese do not traditionally drink milk However, as the country has grown more affluent over the past few decades, the domestic dairy industry has skyrocketed. China's two larg est dairy companies have greatly benefited from this new trend: China Mengniu Dairy and Inner Mongolia Yili Industrial Group. Simultaneously, numerous entrepreneurs-from dairy farmers to milk-collection station owners to milk distributors- have jump chain of dairy products to make their fortunes. Due to the fierce competition within C dairy industry a few consequences ed into the companies decided to cut corners to reduce costs, regardless of the As Mengniu and Yili position where su sumes 25 million expanded at breathtaking speed, they found themselves in the u tons of milk yearly, putting its dairy market ahead of France and Go more ravw milk, Mengniu and Yili have expanded outside thair base in the brea unique iie upply could not keep up with demand. According to KPMG, China ue Unit 1 Achieving Business SuccessExplanation / Answer
Answer 1: A Supply chain comprises of the various information flow amongst several stages in the management of supply chain to increase the profit margins and the effectiveness of the entire system. There are many steps are taken or recorded through SCM system or software which helps the organization to automate and improve the processes and information between numerous SCM components. Thus, an organization must maintain supplies in order to produce any type of services or goods, without any disruption in the production and to have satisfied customers. Hence, SCM comprises of all the dimensions from people, information, technology, activities needed to transfer a service from a supplier to a customer.
Answer 2: Milk, Cheese, Butter, Yogurt, Cottage Cheese, Boxed Cereals, crackers, Cereal Bars, sandwiched bars, Meat products etc. In case any disruptions happen in the US milk supply, the meat pricing may also fall if the farmers (who are involved in dairy activities) are enforced to slaughter the cattle.
Answer 3: CRM includes all the aspects of the customer association in an organization to maximize the customer retention or loyalty and profit margins for an organization. The customer complaints recorded in the CRM or any type of customer contact shows the problem with the product quality once the produced is introduced in the market. Thus, CRM can pinpoint the issue within the supply chain, related with product or its quality. This helps in understanding from the issues are coming and with which product or supplier.
Answer 4: Business process reengineering (BPR) helps in analyzing and redesigning the workflow among and within the enterprises or organizations, and to make all the business processes highly efficient and effective. This has ability for all the individuals involved in supply chain can communicate to each other in real time and monitor or control the activities, also to improve the business process.
Answer 5: Pros : Starbuck can source the coffee beans from china with low cost; Starbuck can decrease the supply cost by having more common Asian blend to create coffee market; Starbucks can keep the stores to the closer proximity where the beans can be purchased (For Asian stores, China is in closed proximity). Cons: Chinese products have quality issues; Starbucks have built more reputation but China is not known for maintaining or having quality coffee.
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