Management Information Systems - Kenneth J. Sousa Effy Oz 7th Edition Chapter 9

Question

Management Information Systems - Kenneth J. Sousa Effy Oz 7th Edition

Chapter 9 What's your advice?

1.Contracting with supplier partners in other countries can offer challenges compared with dealing with onshore partners. What issues do you believe Liz and Michael should address when ordering from suppliers overseas? Should they order online, or off-line?

tutt necipes while Michael and and marketing aspe began to conside sions and menu "hometown" mea location. Howev, needed some " believed it was i choices, but to additional menu their plan was to el and Tyler were planning the operational ing aspects of the Lakeside location, Liz consider some details of the kitchen opera- The family's plan was to maintain the n" meals and reasonable cost in the new However, she also thought that the menu ome "upgrades" for the new location. She it was important to maintain their core menu s, but to also set a slightly different tone with al menu choices for the Lakeside. Because lan was to offer the Lakeside function room for ess meetings, social functions, and special occa- ans for groups, a broader array of menu choices could give them a competitive advantage. Michael and Liz enjoyed traveling to places outside of the United States. When they traveled, Liz explored the local restaurants and food stores to get inspiration for new recipes and ingredients. She found interesting items in countries such as Spain, Italy, Portugal, and France. She wondered how Kimball's could stimulate their current menu choices as well as build new choices to rebrand the new location. Using the current menu along with her travel notes on various meals and ingre- dients, she was excited about developing a winning menu for their Lakeside location. sted peppers, the imported ingredients could add great value to the menu. Now, what would be the cost and availability for such items? She searched on the Internet for foreign suppliers to purchase items that she would need. There were several suppli- ers who sold and shipped products to the United States. She also researched several U.S. food suppli- ers to compare costs and shipping logistics. Michael and Liz then met to review her ideas and what she found. Michael liked Liz's additions to the menu. For exam- ple, an appetizer tray of various imported cheeses, olives, and roasted peppers could appeal to groups as well as individual patrons. Michael agreed with Liz that they were not abandoning their "old" menu selection, just expanding it to appeal to a broader range of custo- mers. The upgraded appetizers could be marketed to al late-night crowd along with drinks and light fare. Michael also thought that these additional menu items could be offered on certain nights as a special promo- tion or for "after work" gatherings. Michael, being the numbers fanatic, evaluated the costs of purchasing these items through a local supplier or overseas. He found the costs were very similar; prob- ably balanced between the local supplier's markup ver- sus dealing with the overseas manufacturer/supplier directly. Purchasing from a foreign supplier did not seem outrageous. Liz and Michael were pleased with the newly rede- signed menu and its potential to brand The Lakeside a little differently than their current location. New View, New Menu Le began to develop new appetizers, entrees, and side dishes that used various imported spices and condi- ments. Whether it was imported olive oil, pasta, or

Explanation / Answer

Challenges faced when dealing with supplier partners overseas:

> Legal challenges. Before engaing an overseas supplier many things such as import and export restriction at either end, whether technical requirements on both the countries match , who bears insurance costs, etc. have to be considered. Contracts have to be very carefully drafted.

> Language and cultural differences. Communication becomes very tough.

> Payment methods for international transcations are more complicated.

It is better to import offline because terms for offline overseas trade are better defined and it is also evolved. Online trade for overseas is still naive and lot of risk is involved.

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