Chapter 14

Question 1

what’s a complex business structure

Answer 1

example : nike outsourcing their shoe production

Question 2

implications of complex business structures for performance management

Answer 2

planning - core organisation need to be certain on capacity of suppliers

control - core organisation must measure the performance of supplier

ethical behaviour of supplier could damage reputation

Question 3

what are SLA’s

Answer 3

service level agreement - what is expected

Question 4

what are strategic alliances

Answer 4

formed by two or more businesses to share resources to pursue a specific strategy

Question 5

what is a joint venture

Answer 5

two or more firms combine resources for manufacturing, financial and marketing purposes, and each has a share in both the equity and management of the joint business

Question 6

6 potential issues with joint ventures

Answer 6

co-ordination and control
attitudes to risk
establishing goals and objectives
culture and management styles
accountability
reciprocity

Question 7

example of virtual organisation

Answer 7

amazon - actually use different suppliers but they co-ordinate the sale

Question 8

implications on virtual organisations for performance management

Answer 8

core organisation has to manage performance of suppliers but they dont have the legal right to - they need an SLA

monitoring remote works is also more difficult than in house staff

Question 9

definition of supply chain management

Answer 9

planning and management of all activities in sourcing and procurement, conversion and all logistics,

include co-ordination with suppliers, intermediaries. 3rd party service providers etc

Question 10

what do you need to know to to manage the supply chain

Answer 10

customer demand patterns
SLA’s
cost
distance consideration

Question 11

what is electronic data interchange (EDI)

Answer 11

enabling instantaneous, paperless purchase orders with suppliers

Question 12

what is enterprise resource planning systems (ERPS)

Answer 12

integrating an entity’s systems thereby helping manager co-ordinate production, procurement, inventory, customer orders and sales

Question 13

what is radio frequency identification

Answer 13

RFID tags attached to materials or inventory enable them to be tracked more accurately. A company knows what is being delivered when and what is already in stock