Essay on Business Driven Technology Chapter 3 Homework

645 Words Apr 27th, 2016 3 Pages
BTC 200 (50969)

Homework # 1
Got Milk? It’s good for you Unless it’s contaminated

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.

2) List all of the products that could possibly be affected by a problem in the U.S. milk supply
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By reengineering work flows with better quality controls within the production process companies can more easily uncover issues within the supply chain at their source. Through breaking down the processes of the business and organizing around outcomes companies can uncover the remote inefficiencies in their processes.

5) What are the pros and cons for Starbucks of outsourcing the growing of its coffee beans to Chinese farmers?
Pros – Starbucks has been closing stores in the U.S. to cut costs. Starbucks could cut cost by sourcing its coffee beans from China where labor costs are lower.
Pros – Coffee is often priced by the brand name of the coffee. Starbucks could dramatically decrease the cost of its supply by buying 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 – Starbucks 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.

Cons – Chinese food products have had issues with quality. Because the demand for coffee is outpacing its supply much like the case for the dairy

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