1. Do you see the currently implemented strategies as effective or ineffective within the value chain? Why?
MGMT HARDWARE, runs a chain of fourteen (14) building
supplies stores located in four (4) Caribbean countries. The
company caters for a wide set of products and services including,
building materials, home delivery, household materials, retail sales,
online ordering, drive through sales and order-online-pickup-instore sales. The company has a centrally branded ecommerce website that caters to the needs of
all four (4) countries and presents a consistent look and feel to all customers.
The locations within each country connect over a Metro-E wide area network (WAN) provided by
FLOW, but there is no country-to-country connectivity. Mainly because the company grew by
mergers and acquisitions, not all locations use the same Enterprise Resource Planning (ERP)
software.
Each store also has an “offline” server that ensures the location can still sell and receive stock
when the WAN goes down. Within a country, each store has a local Point-of-Sale (POS) but these
all replicate back to a central hub in the main country office. Replication occurs once every 15
minutes, so the country head office is virtually up-to-date, in real time and can see, at a glance,
transactions in each store.
Not so long ago you were a newly promoted manager in the company. Now you are given a new
challenge. A case study that must consider all the players and functions in the value chain.
Case Requirements:
This case study encompasses a problem contextualized around the application of in-depth analysis
and interpretation, resulting in specific recommendations for action or for improving existing
conditions.
Value chain analysis, put forward by M. Porter, is used by many companies to help them
understand those activities that give a competitive advantage, and help to create value.
The problem: You are required to review the above case, within the framework of the five
(5) primary and four (4) secondary components of the value chain, while considering the
following questions.
1. Do you see the currently implemented strategies as effective or ineffective within the value
chain? Why?
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