Please provide a summary of the information provided below.
Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment
Section: Chapter Questions
Problem 1CE
Related questions
Question
Please provide a summary of the information provided below.
Transcribed Image Text:7:36
all 99%
CHAPTER I7
Global Manufacturing and Supply-Chain Management
actively sought out Nokero for possible partnerships. Katsaros validated this strong interest
when he attended his first international trade show for Nokero, The AID and International
Development Forum, in May 2011 in Washington, DC. Nokero's booth was one of the most
popular in the trade show and Katsaros received dozens of inquiries and sales leads from
social enterprise attendees during the Forum.
In contrast to working with governments and international organizations, partnerships
with social enterprises entail a different set of challenges for Nokero. The programs champi-
oned by these partners are quite diverse, the customers that they serve are widely dispersed,
and their order amounts tend to be smaller-although purchases are made more frequently.
All of these considerations require different order and fulfiliment mechanisms in Nokero's supply
chain. While these processes may be more demanding, Katsaros is committed to working with
micro-business and the social enterprise sector since serving the people that these enterprises
reach out to is at the core of Nokero's mission.
Opportunities in Commercial Channels
Nokero has driven sales through the commercial channel in two ways: through direct, web-
based sales and through licensed distributors. Customers order directly through Nokero's
website (Nokero.com) and pay using a credit card or an account through PayPal. Once an
order is placed and payment is verified, the order is added to a sales spreadsheet and is ex-
ported nightly to Nokero's fulfillment center, which handles the order deliveries. Nokero fills
orders using Hong Kong Post or Singapore Post. The customer can then log on to Nokero's
website to track the shipment of its package and order history by entering the email address
that it used to place the order.
In its first year, Nokero was successful in selling tens of thousands of dollars worth of
light bulbs to more than 90 countries through its website. Accordingly, one major opportunity
that Katsaros sees in this channel is sales conversion-i.e., converting people who have
placed sample orders to sign up as distributors. To date, Nokero has no strategy or process
in place for such sales conversion other than a form on its website that invites peopie to ap-
ply to become distributors.
The company's largest customers are distributors, associations, and individuals that
have ordered thousands of light bulbs, including Anzocare (South African Alternative Energy
Association), Westinghouse Lighting Corporation, and three major individual distributors
from Zambia, Ghana, and Fiji. Additional distributors are in place in Nigeria, Cote D' Ivoire,
Mali, Burkina Faso, Vietnam, Tanzania, Vanuatu, and other countries. Large commercial
orders are filled directly from Nokero's factory in China via the port of Shenzhen, China.
Nokero's outsourced fulfillment partner in Shenzhen, China, serves smaller orders.
How should Nokero build its distrībution footprint in international markets? Should the
company focus its expansion in one or a few regions at a time? If so, what regions should
the company emphasize? What performance standards or metrics should Nokero put in
place for distributors? A number of potential distributors have asked Nokero for exclusive
rights in key geographic markets. Should Nokero grant exclusive country distribution rights?
Addressing Supply Chain Issues
As previously mentioned, Katsaros understands that the success of Nokero's business
hinges on its ability to address critical supply chain issues. Katsaros and his Hong Kong
partners must ensure that the company is ready to fill both large and concentrated orders
from government and international organizations as well as sample and small order sales
from hundreds of customers that are geographically dispersed. At this point, Nokero needs
to evaluate whether it should bring on board a second or third supplier that will support its
major supplier partner in China. Moreover, it needs to evaluate the locations of the com-
pany's fulfiliment centers. Will it be more desirable to have distributed fulfillment centers in
closer proximity to its customers in Africa and Latin America to support its fulfillment center
in Shenzhen, China?
II
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Recommended textbooks for you
Understanding Business
Management
ISBN:
9781259929434
Author:
William Nickels
Publisher:
McGraw-Hill Education
Management (14th Edition)
Management
ISBN:
9780134527604
Author:
Stephen P. Robbins, Mary A. Coulter
Publisher:
PEARSON
Spreadsheet Modeling & Decision Analysis: A Pract…
Management
ISBN:
9781305947412
Author:
Cliff Ragsdale
Publisher:
Cengage Learning
Understanding Business
Management
ISBN:
9781259929434
Author:
William Nickels
Publisher:
McGraw-Hill Education
Management (14th Edition)
Management
ISBN:
9780134527604
Author:
Stephen P. Robbins, Mary A. Coulter
Publisher:
PEARSON
Spreadsheet Modeling & Decision Analysis: A Pract…
Management
ISBN:
9781305947412
Author:
Cliff Ragsdale
Publisher:
Cengage Learning
Management Information Systems: Managing The Digi…
Management
ISBN:
9780135191798
Author:
Kenneth C. Laudon, Jane P. Laudon
Publisher:
PEARSON
Business Essentials (12th Edition) (What's New in…
Management
ISBN:
9780134728391
Author:
Ronald J. Ebert, Ricky W. Griffin
Publisher:
PEARSON
Fundamentals of Management (10th Edition)
Management
ISBN:
9780134237473
Author:
Stephen P. Robbins, Mary A. Coulter, David A. De Cenzo
Publisher:
PEARSON