Sabor Internaional Case Study

consumers will begin to buy more margarine. As the price of Apple products increasers, consumers can turn to Microsoft technology. If the local movie theater shuts down, people could just as easily be entertained by a rental movie. Similar to this, if gun control activists were to win and guns were to be outlawed, killers could easily accomplish their goal using other weapons. Some products have no substitute and

new competitors and they will tend to copy the ideas of products and try to dominate the

An industry product can be substituted by a substitute product which has the same or similar function by a different means. A substitute can limit industry profitability and growth. Porter (2008) gives several key elements on determining the threat.

Weaknesses: Massive delays in production. Abrogation of contract with current supplier. Extensive training costs for new products. Extensive project-management costs to deploy new product. Substantial increase in customer churn due to offering different product. Possible negative press in foreign market. Possible domestic layoffs due to change in product.

The objective of the NBD is to ensure that DSM’s financial goals are met by increasing each product’s market potential and improving production technology. At the same time, NBD must keep its costs under control so that the product can be sold at a low price. For Stamypor, improved methods of cost reduction and a manufacturing system that will give the product a consistent porosity level are the main requirements that need to be met for this project to continue to the next stage.

technology whose demand and sales do not have a proven track record, but it still will be able to count on its current alligator tag, system and other sales to help fund it.

3. A summary of a proposed supply and sourcing strategy to be adopted in creating and delivering the product that is in line with Monsoons existing supplier relationships and corporate social responsibility policies

Applying the new policy to rationalise BAL’s supplier base over six years, BAL achieved direct cost savings by decrease the base of supplier, and the next target was 600. In order to verify whether BAL’s suppliers were authorised and qualified to produce the necessary parts, BAL needed to ensure any “flyaway” items purchased or manufactured had complete traceability.

1. Describe the nature of the sourcing teams (those responsible for making purchase decisions of fracturing fluid) at BNG.

In order to compare different suppliers, we must take a look at their income statements and balance sheets. These financial statements allow us to assess the company’s risks for continuing operations and its ability to provide us the required parts. In order to do a risk assessment, we need to measure company’s profitability and solvency. This would help us determine whether the company is in good condition to supply us in long term and also in harder economic difficulties or would it go bankrupt and leave us with a great loss.

Bodie Industrial Supply, Inc is a full service distributor of top line, brand name, new and used certified machine tools, maintenance parts and related equipments for the construction, utility and farming markets. The demand for equipment is relatively cyclical, with Bodies having a slight increase in sales to farming markets in the summer. Bodie’s has seen a huge sales growth increase in 2003-2004 of 72% and 29% in 2004-2005. This is mostly due to an increase in net sales and keeping a constant level of costs of goods sold.

With reference to the Vickers Industrial Supplies request for a distributorship and associated pricing discount, I have prepared a decision report to assist you in taking a decision. The report contains the analysis of the situation, the options available, my recommendation and an action plan. The recommendation has been arrived at by evaluating the options based on criteria which are aligned with the company’s objectives.

regulation, cost and availability of raw materials, and cost of labor. A business may have the best idea for

To choose the best suppliers for our various components, all existing suppliers are evaluated. Cost per item, accounts payable (A/P) terms, actual delivery time, average days late on delivery, and total ordered quantity are calculated and compared. Because on time delivery is vital to our daily operation, delivery time and average days late are considered the most important criteria. Based on this evaluation, suppliers recommended for each component are listed below.

Graneer Systems needs to determine the attractiveness of the Indian water purification market and determine the best mode of entry. Graneer needs to determine what life cycle the industry is in, how many competitors exist and what are their competitive strategies, what are the forces in the broad environment and how are they going to inhibit or promote market entry. Graneer also needs to determine the best product design for entering this market and a pricing strategy.