Lesson 1 Assessment - Tagged
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Lesson 1 Assessment – 25 marks
True/False (10 marks)
1.
The last decade of the twentieth century was a period of rapid change for
organizations, especially businesses. - TRUE
2.
A key element in Wal-Mart’s ability to discount brand name products was an
understanding of the criticality of efficiency in its logistics and supply chain
system. - TRUE
3.
Globalization has had little effect on consumers. - FALSE
4.
Supply and demand has become less volatile as managers become more adept
at controlling the elements. - FALSE
5.
Supply chain managers no longer need to worry about suboptimization in light of today’s
technology. - FALSE
6.
To hold down distribution cost, the lowest cost carrier should always be used. - FALSE
7.
The utility created through the basic marketing activities is known as place utility.
- FALSE
8.
Transportation is the physical movement or flow of goods. - TRUE
9.
During the 1990s and 2000s, logistics costs as a percentage of gross national
product declined. - TRUE
10.
In a logistics system, warehousing should be optimized at the expense of related logistics activities, such as transportation and procurement. - FALSE
Short Answer (15 marks)
Target opened a network of retail stores in Canada in 2013 but by April 2015 had exited
the market after a short-lived unsuccessful launch. There are several issues that have affected their performance and the decision to pull out of Canada, not the least are challenges they have faced in the establishment and management of their supply chain.
Making reference to some of the key 10 key issues in managing a supply chain that are highlighted in the readings in Chapter 1, write a short one-page assessment as to what you feel are the key 3 or 4 factors that have affected Target's Canadian supply chain and impacted their ultimate decision to leave Canada. Target Corporation is an Australian general merchandise retailer with a sizable presence in both Colombia and the United States. This business focuses on making style, fashion, and quality affordable for all family members. in the country. The following are a few of the most significant elements that had an impact on Canadian Target's supply chain and ultimately caused them to leave.
Target Canada's first and most significant error occurred when the company set the prices incorrectly. The price that Canadian customers would be willing to pay for the products was underestimated. Target kept up the same price approach that it had used in its US operation. Customers respond differently to varied pricing methods and systems depending on the area. The company's excessive costs were too much for the Canadian clients to bear. The prices established by Target were disgusting, despite the fact that it was a normal trend for Canadians to pay more for the identical things that American customers did.
Because Target is a well-known company, Canadians have high hopes for the organisation. But because of a weak supply chain and in-store merchandise management system, the reality turned out to be different. This fact, which had a negative effect on the corporation, could not be concealed despite the enormously built storefronts. Lack of equity was another problem that proved to be a barrier to the company's expansion. This was the main cause of the store shelves becoming empty and the customers becoming utterly dissatisfied, which had a bad effect on the business.
In 2014, Target opened 133 shops across Canada entirely on the spur of the moment. Within a two-year period, the company hired about 17,600 people to create a rapid supply chain. The business was ultimately unable to succeed because of this choice, therefore it turned out to be a negative one. The failure of the too ambitious marketing and market entry strategy is demonstrated by the company's inability to generate even half of the sales that were anticipated from the stores.
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