Businbess Driven Technology Essay
Question 1: Explain why the supply chain can dramatically impact a company's base performance
Supply chain management involves the management of information flows between and among stages in a supply chain to maximize total supply chain effectiveness and profitability. The dozens of steps are required to achieve and carry out each of the above components. SCM software can enable an organization to generate efficiencies within these steps by automating and improving the information flows throughout and among the different supply chain components. If one member of the supply chain makes a reckless decision it can impact the entire supply chain. This is what …show more content…
Question 5: What are the pros and cons for Starbucks of outsourcing the growing of its coffee beans to Chinese farmers?
-Pros: Starbuck has been closing stores in the U.S.to cut costs. Starbuck could cut costs by sourcing its coffee beans from China, where labor costs are lower. -Pros: Coffee is often priced by the brand name of the coffee. Starbuck could dramatically decrease the cost of its supply by buying a more generic Asian blend and creating a market for its coffees. -Pros: Starbucks could source beans for its Asian stores closer to where they are located if it were to buy beans from Chinese farmers. -Pros: Starbuck has plans to open 1000 new stories in China over the next few years and sourcing their coffee from within China will be favorable for the company with the Chinese government.