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- Look at the Acer case at the beginning of the chapter and respond to the following items. 2. What goals did they accomplish?Describe the three levels of strategy and what a manager developing strategy at each level is concerned with.Inside Teslas Strategy for Growth Tesla has been pursuing a strategy of aggressive growth since its founding in 2003. The companys mission is to accelerate the move to vehicles that will save energy while saving the planet. The key word here is accelerate. Teslas strategy combines a long-term vision of a world fueled by renewable energy with a sense of urgency about creating Earth-friendly vehicles that customers will want to drive now. Because it relies heavily on technology, its not surprising that Tesla is based in Palo Alto, California, home to tech giants like Hewlett Packard and Facebook. The firm operates a single, highly automated manufacturing plant in Fremont, California. It also built its own massive production facility to supply lithium-ion batteries for its vehicles and developed a network of charging stations from coast to coast. Instead of selling through dealers, Teslas strategy is to sell directly to consumers. This unusual arrangement allows more control over the sales process and yields a higher profit margin per vehicle, because dealers arent part of the distribution channel. In planning its products, Tesla has gone beyond the green appeal to showcase the style, speed, and status of its vehicles, marketing to people who want a special driving experience. Consider the Roadster, a snappy, low-slung sports car introduced in 2008. The attractive and sporty Roadster broke the mold for traditional electric cars and rocketed Tesla into the public eye. The company stopped selling the Roadster in 2011 as it focused on launching the Model S, a stylish, high-end, high-performance sedan with self-driving capabilities. The head designer knew he had to create an all-electric sedan that would stand out in a crowded field of competing vehicles made by international giants such as Audi, BMW, and Mercedes. His design blends the best of today and tomorrow, creating a classically elegant yet forward-looking exterior. Just as important, the Model S has an extended driving range, thanks to the companys advanced battery technology. Next, Tesla introduced the head-turning Model X, a luxury SUV with unique falcon wing passenger doors that open upward for access to rear seating. Thousands of consumers rushed to put down a deposit for this new product, eager to be among the first owners. Despite strong demand, the company struggled to increase production output because of the complexities of manufacturing the unique vehicle and because of parts shortages. Tesla delayed deliveries for months while it ironed out these problems. Expanding the product line and targeting a new customer segment, Tesla then introduced the Model 3. This sedan is more affordably priced than the firms previous vehicles, part of the strategy to enter the mainstream of high-volume, all-electric car marketing. The Model 3 has a modern, uncluttered look with curb appeal. The dashboard is similarly uncluttered, replacing the usual gaggle of gadgets and buttons with one touch-screen control panel. Enhancing Teslas reputation for technology, the Model 3s autopilot feature allows for some driverless operations. More than 450,000 people have already submitted a deposit of 1,000 each to reserve a Model 3. Still, Tesla has had difficulty bringing production to full throttle and, as a result, has been forced to delay some deliveries. Looking ahead to the long-term goal of producing 500,000 vehicles per year and profiting from economies of scale, Tesla is hiring thousands of employees and revamping facilities for higher output. It is preparing for several product introductions, including a new Roadster sports car, a Model Y crossover vehicle, and a Semi truck. Can Tesla achieve sustained profitability as it races to meet its ambitious goals, tries to outpace competitors, and seeks to accelerate the transition to renewable energy?30 What are Teslas core competencies, and how do they help the company compete with long-established car companies?
- How has Teslas strategic position changed since it was founded in 2003?What is the difference between goal, domain, and hybrid planning?Avion, Inc. Susan Dey and Bill Mifflin, procurement managers at Avion, Inc., sat across from each other and reviewed a troubling performance report concerning a key supplier, Foster Technologies. The report detailed the deteriorating performance of Foster Technologies in the areas of material quality and on-time delivery. At this point, Kevin ODonnell, another procurement manager, entered the room. Why can changes within a supply chain disrupt the normal flow of goods and services within a supply chain?
- Scenario 4 Sharon Gillespie, a new buyer at Visionex, Inc., was reviewing quotations for a tooling contract submitted by four suppliers. She was evaluating the quotes based on price, target quality levels, and delivery lead time promises. As she was working, her manager, Dave Cox, entered her office. He asked how everything was progressing and if she needed any help. She mentioned she was reviewing quotations from suppliers for a tooling contract. Dave asked who the interested suppliers were and if she had made a decision. Sharon indicated that one supplier, Apex, appeared to fit exactly the requirements Visionex had specified in the proposal. Dave told her to keep up the good work. Later that day Dave again visited Sharons office. He stated that he had done some research on the suppliers and felt that another supplier, Micron, appeared to have the best track record with Visionex. He pointed out that Sharons first choice was a new supplier to Visionex and there was some risk involved with that choice. Dave indicated that it would please him greatly if she selected Micron for the contract. The next day Sharon was having lunch with another buyer, Mark Smith. She mentioned the conversation with Dave and said she honestly felt that Apex was the best choice. When Mark asked Sharon who Dave preferred, she answered, Micron. At that point Mark rolled his eyes and shook his head. Sharon asked what the body language was all about. Mark replied, Look, I know youre new but you should know this. I heard last week that Daves brother-in-law is a new part owner of Micron. I was wondering how soon it would be before he started steering business to that company. He is not the straightest character. Sharon was shocked. After a few moments, she announced that her original choice was still the best selection. At that point Mark reminded Sharon that she was replacing a terminated buyer who did not go along with one of Daves previous preferred suppliers. What does the Institute of Supply Management code of ethics say about financial conflicts of interest?Scenario 4 Sharon Gillespie, a new buyer at Visionex, Inc., was reviewing quotations for a tooling contract submitted by four suppliers. She was evaluating the quotes based on price, target quality levels, and delivery lead time promises. As she was working, her manager, Dave Cox, entered her office. He asked how everything was progressing and if she needed any help. She mentioned she was reviewing quotations from suppliers for a tooling contract. Dave asked who the interested suppliers were and if she had made a decision. Sharon indicated that one supplier, Apex, appeared to fit exactly the requirements Visionex had specified in the proposal. Dave told her to keep up the good work. Later that day Dave again visited Sharons office. He stated that he had done some research on the suppliers and felt that another supplier, Micron, appeared to have the best track record with Visionex. He pointed out that Sharons first choice was a new supplier to Visionex and there was some risk involved with that choice. Dave indicated that it would please him greatly if she selected Micron for the contract. The next day Sharon was having lunch with another buyer, Mark Smith. She mentioned the conversation with Dave and said she honestly felt that Apex was the best choice. When Mark asked Sharon who Dave preferred, she answered, Micron. At that point Mark rolled his eyes and shook his head. Sharon asked what the body language was all about. Mark replied, Look, I know youre new but you should know this. I heard last week that Daves brother-in-law is a new part owner of Micron. I was wondering how soon it would be before he started steering business to that company. He is not the straightest character. Sharon was shocked. After a few moments, she announced that her original choice was still the best selection. At that point Mark reminded Sharon that she was replacing a terminated buyer who did not go along with one of Daves previous preferred suppliers. Ethical decisions that affect a buyers ethical perspective usually involve the organizational environment, cultural environment, personal environment, and industry environment. Analyze this scenario using these four variables.Scenario 4 Sharon Gillespie, a new buyer at Visionex, Inc., was reviewing quotations for a tooling contract submitted by four suppliers. She was evaluating the quotes based on price, target quality levels, and delivery lead time promises. As she was working, her manager, Dave Cox, entered her office. He asked how everything was progressing and if she needed any help. She mentioned she was reviewing quotations from suppliers for a tooling contract. Dave asked who the interested suppliers were and if she had made a decision. Sharon indicated that one supplier, Apex, appeared to fit exactly the requirements Visionex had specified in the proposal. Dave told her to keep up the good work. Later that day Dave again visited Sharons office. He stated that he had done some research on the suppliers and felt that another supplier, Micron, appeared to have the best track record with Visionex. He pointed out that Sharons first choice was a new supplier to Visionex and there was some risk involved with that choice. Dave indicated that it would please him greatly if she selected Micron for the contract. The next day Sharon was having lunch with another buyer, Mark Smith. She mentioned the conversation with Dave and said she honestly felt that Apex was the best choice. When Mark asked Sharon who Dave preferred, she answered, Micron. At that point Mark rolled his eyes and shook his head. Sharon asked what the body language was all about. Mark replied, Look, I know youre new but you should know this. I heard last week that Daves brother-in-law is a new part owner of Micron. I was wondering how soon it would be before he started steering business to that company. He is not the straightest character. Sharon was shocked. After a few moments, she announced that her original choice was still the best selection. At that point Mark reminded Sharon that she was replacing a terminated buyer who did not go along with one of Daves previous preferred suppliers. What should Sharon do in this situation?
- What is a firms micro environment, and why is it important?Despite Ubers apparent success in launching in multiple markets, it continues to post quarterly losses in the millions and shareholders effectively subsidize 59 percent of every ride (https://www.reuters.com/article/us-uber-profitability/true-price-of-an-uber-ride-in-question-asinvestors-assess-firms-value-idUSKCN1B3103). How is this an outworking of Ubers overall corporate culture?
