Assignment: Week 3 Case Study Central Transport, Inc Jason M Williams/3111448 23 March 13 TLMT441 Advanced Business Logistics American Military University Instructor: Roxanne Grosett Introduction Susan Weber, the new president and CEO of SAB Distributions has offered a new collaborated relationship to Jean Beierlein, president and CEO of Central Transport. Dramatic changes in the market have changed SAB, and it continues to get worse. SAB is losing the competitive advantage over other companies entering the distribution market, and it is causing SAB to use a different approach. According to Susan, SAB needs to change, and get away from the “status que”. SAB has decided to expand to take on some larger retailers in …show more content…
Susan has come up with a strategy to maintain the competitive advantage, by involving 3PL’s. According to Susan, Central Transport can arrange the 3PL service of warehousing, transport and delivery, and inventory management. Jean knows there are a lot of challenges with the proposal and adoption of the 3PL. Another problem the SAB is facing is globalization. “Globalization has impacted SAB’s business, because of an increase in imported products for the diverse population of the United States and the ongoing search for lower-priced alternatives (Coyle, Gibson, Novak, 2009).” If the plan is successful, both companies need to globalize and broaden clientele to increase revenue. When a company’s materials and outsourced services costs account for 40 percent or more of its total operating budget, a small decrease in material and service costs can increase profit (Burt, Petcavage, & Pinkerton, Richard, 2010). If SAB can supply its products to companies like Wegmans Food Market, Central Transport can afford to take the risk. Recommendations for Improvement Susan, the CEO of SAB needs to remember that for most people change is uncomfortable. The effects this strategic change will have on the entire organization needs to develop and not be rushed. If the change is accomplished to quickly, the company could start losing key employees that can take SAB to the next level of competitive advantage. SAB must successfully manage the
1. Utilize Web technology that allows customers select features with custom design options. (S1, O2)
The chief concern is the major change and transformation that needs to take place, a new model that has the potential for new ground, trailblazing ahead. Currently, due to economic, social, and cultural shifts, Seagram recognizes a need for a shift as well in order to meet new demands, attitudes, and perferences. In attempting to increase profits, retain reputability, and influence, Seagram
Businesses have to adapt to the ever-changing economy. It is not much of a choice for business leaders to change elements of their organization to stay in competition with their peers. The hardest part, most of the time, is changing the people in the organization to develop the necessary outcome or goal. As a business leader getting rid of people or changing their job specifics is one of the many responsibilities they have to be comfortable performing. Organizations have to take into consideration their competitors, customers, shareholders, employees, and the community to make decisions. Change is an aspect that many people are afraid of. In the new millennium, organizational leaders have to embrace
The team will also examine the strength and weakness of the resources and capability of USPS to determine its competitive potential. The analysis will also include strategies developed to gain and sustain competitive advantage and if those resources are valuable, rarity, imitability and, organization. The team will also examine USPS cost leadership strategy, its source, cost and imitability. It is also imperative to review the product differentiation of USPS how they use distribution channels, product customization, service and support to their
The purpose of this book is to make us see that nearly all-operating prescriptions for creating large-scale corporate change are nothing but myths and that changes do not happen from one day to another by a miracle, the change from good to great is the result of a successful plan who
Addressing these challenges through identifying and diagnosing the reason change is important to their organizations has been critical to the success of both companies. There have been many important factors for these companies to take into consideration to implement effective change management initiatives. We will now look at both companies and identify a few recent changes they have made in their organizations and how they approached the barriers they encountered.
As higher demands continued to be placed on GMM’s production and distribution operations, its transportation network lacked collaboration. In effect, each operation was making individual logistics decisions, creating costly redundancies and inefficiencies throughout the supply chain. However, On-time delivery is critical in their business, and they consistently meet their customers' requirements. With cost, service and punctuality always at the forefront, consolidates shipments, manages carriers, and optimizes air, sea and ground routes. (Penske, 2010)
The company transformation from private equity ownership with an immediate shift of CEO marked new challenges for the company. The company has been going through rigorous changes to keep up with the strong
The selected business functions that outsource to a third party has become a common practice in the corporate world. The function of logistics is often to outsourced and providing logistics service companies have evolved into providing a vast range of logistics functions including inventory management, transportation services and warehousing services. The companies which provides logistics services on contract to other companies are known as Third Party Logistics Providers ( 3PLs).
Recent economic recession and federal budget cut has significantly impacted SAIC’s core business and affected its revenue and growth. Its stock price fell 25% since last September because the shareholders were disappointed with the operation and worried about the future revenue growth and earning. The SAIC management realized that the market has changed; the company’s strategy and focus have to change accordingly. The leadership established a sense of urgency by creating a compelling reason for why changes are needed (stage 1). In July 2009, the board of directors hired a new CEO, Walt Havenstein, to carry out the change process. In the summer of 2010, Hevenstein (the change agent), made a strategy-based change in the corporate leadership structure and personnel (Stage 2). The new strategies had been formulated: to provide mission-oriented solutions for national security, energy, health and other major enterprises serving critical infrastructure needs. The company planned to shift its customer based structure to market reoriented structure, and shift resources to focus on high-growth areas (Havenstein, July 22, 2010). The current organization structures is under regrouping (four groups to three); some units is being dismantled; duplicated departments is being eliminated (Stage 3). In October, 2010, Hevenstein wrote a letter to all SAIC employees stating that “SAIC's
Today in the global business world we know that strategic changes are fundamental in order to
For any business in the rapidly evolving world of business, planning and implementing successful organizational change is indispensable. Essentially, organizational change refers to a process whereby an organization strives to optimize performance in order to achieve its ideal state characterized by high performance and profitability (Côté & Mayhew, 2014). Any business would be more likely to lose its competitive edge, as well as fail to meet the demands of its loyal consumers if it doesn’t plan and implement change. Weiss (2012) emphasizes that all organizations ought to embrace change, and it’s imperative to note that successful organizational change doesn’t involve simple process of adjustments; instead it requires appropriate change management capabilities.
Even though the culture looks so strong that it would survive a change in leadership, the new CEO would not only have to possess business leadership ability but also shares the same values as Goodnight so that SAS does not deviate from its current approach to its business and management. Hence, with no formal succession planning and still being heavily involved in almost all aspects of the organization, the SAS institute approach to its business and management is heavily dependent on Goodnight’s continuation.
Following the paradigm shift on the role of logistics management in the recent decades, there has been a wide recognition of this as a very important aspect a business strategy in general. However due to the numerous factors promoting complexity of logistics management companies have adopted the idea of outsourcing their logistic activities to Third Party Logistics (3PL) providers. Hence, 3PLs have taken a critical role towards supply chains of heir customers.
The transportation and logistics industry is one of the key components of modern life. It provides the framework through which every raw material and finished consumer good is moved through the supply chain into the hands of consumers. This industry is generally taken for granted by consumers. When consumers do think about the industry it is thought of in terms of unchanging and stagnate transportation modes. This vision of the industry is not an accurate reflection of the reality of modern transportation industry. During the last several decades the technological innovations that have changed the face of modern life, have also had far reaching effects on the transportation industry. The pressures driving innovation in the industry