Jit2 Task A Risk Register

The case is about Loblaw companies Inc., a highly successful grocery chain in Canada. Loblaw is Canada’s largest food distributor. The major issue is the emergence of Wal-Mart, who is looking to pursue expanding their grocery line chain in the Canadian market. According to Yunna (2014), porter’s five forces model has been widely applied to analyze industry competition in various markets. Using Porter’s 5 Forces to analysis the issues of the case can be a useful tool in summarizing the attractiveness of the market or industry. According to Dobbs (2012), the five forces are the threats posed by competitive rivalry, powerful buyers, powerful suppliers, potential new entrants, and substitute products. The analysis of Porter’s five forces framework can be viewed in figure 1. The case describes the retailer-supplier relationships as power plays. As the scale would tilt in favor of the one wielding the most clout at a point in time. There are numerous manufacturers with various substitutions among the grocery store. However, a supermarket would lease out shelf space for rent. The manufacturers would pay the grocery store a combination of different allowance to obtain secure shelf and warehouse positions for its products. Ultimately the category manager had the final word, which left the manufacturers with little to no bargaining power.

Companies in the retail industry operate in a high price elasticity environment as there is not much product differentiation to leverage. Buyers face almost no switching cost if they chose a substitute offering better value. On the contrary, large and diverse population making small purchases works in favor of the industry. No one individual or a small group has the power to significantly impact the industry, but overall buyers enjoy have a high bargaining power in the industry.

| Not being able to respond to consumer wants/demands quickly enough, leading to short-term revenue loss

new brands are at very high risk of failing, as the consumer is more reachable when

The plans devised by each team can be tested. It may not be possible to test all sessions at one time. Facilities can have planned drills in which they evacuate buildings. IT can test their back up servers by accessing files at random times. It’s recommended that IT does this frequently as even one lost day of data could do harm to the company. Employees should be able to go through the motions of a disaster day. Everything from calling into a line and making sure they understand instructions for new meeting locations to being able to work from a remote computer should be covered. The warehouse and create a strategy to obtain new transportation and new storage facilities should theirs be destroyed. It’s better to practice and understand the plan before any incidents occur than to try to piece it together in the middle of chaos.

You have been asked to develop a risk inventory, risk map and the general risk response you would recommend to address each risk.

In the following essay, I will write about Adidas Company and will describe the relationship among its various quality costs which are failure costs, internal failure costs, external failure costs, appraisal costs and prevention costs. In addition, I will analyze the efforts the company should focus on to further improve the quality of its products/services. Therefore, this essay is divided to 3 main points which I think the company should focus to improve its quality. The first point is the prevention cost which’s the most important quality cost that

Companies like Under Armour, Nike and Adidas/Reebok have high threats of substitute´s products. These companies share the sport apparel industry and are vulnerable to competitive pressure from the actions of buyers whenever they view that their products can be substituted for others. The availability of substitutes invites the costumer to compare performance, features, and ease of use as well as price. Under Armour’s major competitors are Nike and Adidas/Reebok because they have a similar or competing product offerings. The top sport apparel brands offer similar products and that is why each one of them needs to keep a high standard and produce good quality products in order for customers to keep buying their product.

It is a competitive industry with regular takeovers and acquisition. The entry of stores like Wal-mart has also led to complications since they have the capacity to cut prices. The undercutting brings a whole new paradigm to the

| Economic 1. Downturn in the economy has negatively affected the manufacturing and construction sector – resulting in some clients going out of business, and having implications upon credit insurance 2. The financial system remains vulnerable to setbacks in both the global economic recovery

Therefore it makes it hard for companies like Nike, Adidas and Under Amour etc. to be able to have power over the customers. If a buyer is dissatisfied with any company in the industry; that buyer can easily switch to another company to acquire the products that they need.

Threat of Substitute Products: Atheletic shoes are designed for comfort, fit and personal safety during periods of iintense or increased movement. The existence of close substitute products increases the propensity of consumers to switch to alternatives in reponse to price increases. The availability of substitutes in the athletic shoe industry, invites customers to make price, quality and performance comparisons. If the athletic shoe is used for a specific sports, there maybe relatively few substitutes. If the shoe is used because of comfortability, they are interchangeable with minimal switching cost. This holds true for athletic shoes worn for fashion. Overall the threat of substitute products is moderate and depends on the motivation for purchasing the product. The impact to profit potential is moderate to high.

1. What is adidas’ position in the athletic shoe market? How does the brand seem to be doing in this market? Position: the position of adidas has transferred from “leading supplier of soccer footwear worldwide” to “leading sport brand”. Adidas was founded in Germany in 1920. In 1995, it became a public company as well as the leading supplier of soccer footwear due to its great performance of footwear sales. In 1998, adidas began to move into the U.S. market. Adidas doubled its U.S. market share within only one year, so it hoped to continue to make big move in following years. In its way to U.S. market, adidas confront with the

Since Adidas’ supply chain is quite large and varied, they have a detailed and systematic approach to managing a strong relationship with their suppliers. Adidas has outsourced a lot of its production. They work with more than a 1000 independent factories around the world where they manufacture their products in 63 countries. China, India, Indonesia, and Vietnam are the most dominant sourcing locations for Adidas. They have five types of suppliers which are main suppliers, subcontractors, material and other service providers, licensees and agents. Main suppliers supply products whether it is for exports or domestics market consumption. Subcontractors are the factories that are subcontracted by the suppliers to perform manaufacturing operations which the main supplier are not able to do. Material and other service providers might not have a direct relationship supply goods and services to main suppliers. Licensees are independent companies which handle the design, production and distribution of specific products under the license of Adidas. In 2016, Adidas have worked with over 60 licensees and the suppliers outsourced the products from 377 factories in 48 countries. Companies that are independent who act as mediators to source product manufacturing, overlook the manufacturing processes, then sell the final product to the Adidas.

Adidas is a major German sports apparel manufacturer, which was founded in 1948. It is the largest sportswear manufacturer in Europe and the second biggest sportswear manufacturer in the world, after Nike. The company's clothing and shoe designs typically feature three parallel bars. The company revenue for 2009 was listed at €10.38 billion. The market segmentation; targeting and position play an important role in this company. This essay will use the three factors to analyze this company.