For firms, inflation causes cost or production to income since workers’ demand pay rises, as well as making it difficult to firms to plan for future. Inflation is an increase in general price levels and has undesirable impacts on households and firms which means the government is justified to use policies to maintain price
As the company is operating in numerous countries it is exposed to currency fluctuations especially given the volatile political climate in number of markets across the world. Rising pay level especially movements such as $15 an hour and increasing prices in the China can lead to serious pressure on profitability of Tyson Foods. Changing consumer buying behavior from online channel could be a threat to the existing physical infrastructure driven supply chain model. No regular supply of innovative products – Over the years the company has developed numerous products but those are often respond to the development by competitors. Secondly, the supply of new products is not regular thus leading to high and low swings in the sales number over period of time.
Since Bose uses JIT system which minimizes inventory. This will have negative multiplier effect downstream supply chain. The implication of this is that, there will be a delay in Bose’s deliveries to its customers resulting in possible loss of customers and profit. To prevent this, Bose must have a strategic alliance with supplier. That ensures quality delivery of
I think these 2 managers along with their subordinate sales representatives can’t reach the customer expectations. 4) To improve customer satisfaction- as per the survey conducted to identify the factors used by customers to select their suppliers, I think AMCO has a good reputation, product quality and service but to improve service time and reduce the price there is a need of change in organization structure. This is evident in survey, large customers who rely on bidding process to purchase expect quick delivery. 5) To improve customer purchase options- I think the current existing purchase options are limited to bidding or purchase by negotiation. These process hinders to attract new customers so to improve the reachability to customers there is a need to change in organization structure.
With established standards, Foxconn will continuously try to attain the standards by engaging in behaviour such as reducing excessive work hours. This can be a quick and easy fix to the issue at hand, however it may not be able to address the root cause of the problem. Foxconn might be merely be ethical for the sake of attaining global standards but without anyone “watching” it, its behaviour will go back to being unethical. This is one of the danger signs as
In fact stock is holding load of crude materials or completed merchandise for a future purpose of utilization. This truth be told obstructs the working capital utilized by the organization In any business, it is vital to have ideal stock at all times. Over stock stocking results in disintegration of benefits and increment in stock conveying expenses that impacts the operational expenses of the organization, while lack of stock can prompt loss of business and deals opportunity which won't just result in income misfortune however harm organization's notoriety and unwavering quality in the business and with client.
Related Literature Literature available on waiting line management indicates that waiting in line or queue causes inconvenience to customers and economic costs to individuals and organizations. Hospitals, airline companies, banks, manufacturing firms etc., try to minimize the cost involved in waiting and the cost of providing service to their customers. Therefore, speed of service is very important and increasingly becoming a competitive parameter. It is very common for customers to overestimate the time which they spend for waiting. As the perceived time of waiting increases, customers get dissatisfaction (Katz et al., 1991).
Economic factors play a crucial role in any investment decisions that are made for taking a gain and better return to the investor. Economic analysis and company performance forecasting are necessary for making investment management (Hiriyappa,2008). There is lack of investment management which has exerted burden over the company to keep getting revenue for current as well as new production plants. If the new plants were set up after examination of organization’s structure and forecast of sales and revenue, then the situation would have been easier. The company mainly depends upon reports by managers who are not communicating well with each other as they are not co-operative.
Many companies respond to risks that have a low impact in supply chains and tend to overlook the high-impact and low-likelihood risks (Chopra & Sodhi, 2004). An understanding needs to be obtained by managers between the connection and variety of the supply chain risks to develop an effective risk response strategy. Hauser (2003) recommends that due to today’s complex environment, adjusting and understanding risk will result in an improvement in financial performance and competitive advantage for an organisation. Hise (1995) states that the objective of supply chains is profit maximisation by finding a balance between productivity (efficiency) and profitability (effectiveness) (Mentzer & Firman, 1994) to shift raw material and products between countries in a timely manner ( Bowersox & Calantone, 1998a) resulting in profitability of supply chains as a whole ( Manuj & Mentzer, 2008). Managers need to consider the different factors that create uncertainties and risks as a global supply chain have numerous delay points, greater uncertainties, and hence the need for greater coordination, communication and monitoring (Manuj & Mentzer,
The debt ratio should be as low as possible to make sure that the company is optimally leveraged. Banks find it hard to offer good loans to companies which are highly leveraged due to high likelihood of default. Only enough inventories should be kept: Inventory is known to tie up funds especially when it is not fast moving. The business should establish optimal inventory levels for various products depending on how fast they move. The principle of “Just In Time” would come in handy in this case.