(1, 2) Impact of Market Change: Strategic Relationship Management

Question 1

What is Julia Balogyn and Veronica Hope Haileys model for definining change?

Answer 1

Uses the Nature (y/) and Scope (/x) of the change to identify:
(L/L) – Adaptation
(H/L) – Reconstruction
(L/H) – Evolution
(H/H) – Revolution
Incremental change is when the nature of change is low and transformational has a high scope of change.

Question 2

What macro-environmental things can impact the supply chain?

Answer 2

S – Social
T – Technical
E – Economic
E – Environmental
P – Political
L – Legal
E – Ethical

Question 3

What 3 environments do organisations operate within?

Answer 3

• Macro Environment
• Micro Environment
• Internal Environment

Question 4

What tools can be used when analysing the micro / macro environments?

Answer 4

STEEPLE
SWOT Analysis
Porters Five Forces
Supply demand and capabilities forecasting
Supply market and supply and vendor analysis

Question 5

What 2 key areas exist in the Micro Environment which may be changing should be considered?

Answer 5

• Direct Competitors

* Market (Customers)

Question 6

Strategy development in a volatile market requires different skills, knowledge and behaviours than when an organisation is operating in a static environment. What is this likely to involve as a supply chain manager?

Answer 6

• Proactive environmental scanning
• Development of agile supply chains
• Shorter decision chains
• Experimentation and innovation
• Challenge and request and use of feedback
• Decentralised strategy development
• Scenario planning
• Learning and adaptation
• Flexibility
• Empowered teams
• Cultural awareness
• Information sharing

Question 7

What risks are risks associated with international sourcing strategies?

Answer 7

• Differing minimum standards (Technical / Legal)

* Differing business values (Cultural / Ethical)

Question 8

What are the two ends of the spectrums of relationship strategies?

Answer 8

• Traditional or competing approach

* Partnering or collaborative approach

Question 9

What areas of difference did David Harris and Neil Botten identify between an adversarial approach and a co-operative approach?

Answer 9

• Attitude to change (adversarial approach is reactive)
• Basis of transaction (adversarial facilitates no trust)
• Flow of information (adversarial one way)
• Time horizon (adversarial is short term focus)
• Negotiating stance (adversarial seeks to take advantage)
• Objective (adversarial seeks survival)

Question 10

What is on the spectrum of relationship strategies (Starting with arms-length leading to core-competencies)?

Answer 10

• Adversarial leverage
• Preferred supplier
• Single sourcing
• Network sourcing
• Strategic alliances
• Mergers and acquisitions

Question 11

What are strategic relationship models you can use?

Answer 11

• Supplier relationship management
• Customer relationship management
• Collaborative planning, forecasting and replenishment (CPFR)
• Partnership sourcing
• Supplier development