Tag Archives: Capability

An alternate plan to rescue the US Postal Service

An article in the Wall Street Journal (April 17,2012) provides an alternative to the current plan to shut post offices and decase delivery days. The Pistal workers union suggests increasing stamp prices, providing delivery services for pharmaceutical delivery etc as … Continue reading

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Social Networking at P&G to drive sales growth

An article in Bloombergbusinessweek (April 3, 2012) describes Proctor & Gamble’s foray into social networking and its demand impact. A Facebook campiagn for Pepto-Bismol focused on “Celebrate Life” – targeting users of the product on Saturday and Sunday mornings – … Continue reading

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Wal-Mart’s ecommerce approach to combat Amazon.com

An article in Bloombergbusinessweek (April 2, 2012) cites WalMart’s 8 % growth in 2011 vs Amazon.com’s 41 % growth as reason for WalMart to innovate in the ecommerce space. The result (a) Endless Aisle – which permits customers to order … Continue reading

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What are GM’s choices for the Opel plant in Bochum, Germany ?

An article in the New York Times (April 2,2012) describes worker frustration at GM’s Opel plant in Bochum, Germany, with worries that it will be shut down in 2014. Wages at the plant are six times the wage rate in … Continue reading

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The ripple effect of Foxconn’s changes

An article in the New York Times (March 29, 2012) describes widspread violations discoverd by the Fair Labor Association, hired by Apple to audit its suppliers, at Foxconn. The supplier, Foxconn, has committed to adhere to Chinese law, which restricts … Continue reading

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Uniqlo’s global expansion

An article in the Economist (March 24, 2012) describes the Japanese retailer’s expansion into the US and China. The company focuses on producing large volume, low cost items that are sold across the season. Given that weather patterns in China … Continue reading

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Inditex’s supply chain as it goes global

An article in the Economist (March 24, 2012) describes the fact that future growth for the parent company of Zara will come from Asia and the US, rather than the current 70 % of sales in Europe. Zara, known for … Continue reading

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The global supply chain for outsourced services

An article in Bloombergbusinessweek (March 19,2012) describes new locations for higher level outsourced work – accounting, research, marketing etc. New locations in Argentina, Guatemala, Poland and Brazil, enable these tasks to be performed closer to the customer, despite being more … Continue reading

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The supply chain impact of minimum wage increases in China, Vietnam and Indonesia

An article in the Wall Street Journal (March 14,2012) describes the impact of wage increases in China on Charming Shoppes, owner of the Lane Bryant, Fashion Bug and Catherine labels. In addition to wage increases, the company realized that 60% … Continue reading

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Refining capacity mismatch and gas price impact

An article in Bloombergbusinessweek (March 5,2012) describes the East coast refining capacity as dependent on Nigerian oil, but the Midwest refineries process higher sulphur content, cheaper Texas crude. Nigerian oil prices fluctuate with MidEast crisis, and thus make East Coast … Continue reading

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