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Coca cola memorandum

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  • 1. 2otzIndependent Institute of Education - Assessment to chain and a value chain Make sure1.1 Explain the difference between a supply (20) for each include all relevant definitions and diagrams Van Heerden CH" Van (LU 7. Source: Strydom, WJ" Nel D Bothma C" Scheers, T. & Grove T (2OOg) Distribution Manaoement 2"d edition Pretoria, Van Schaik PublishersPp 22-25 gets 7 mark llse discretion, each valid point only 4 marks defining suPPIY chain 4 marks for diagram suPPIY chain 4 marks defining value chain 4 marks for diagram value chain 4 marks for explaining the difference) Supolvchain:Startsfromtheoriginsoftherawmaterials(1)usedinthe or product has been discarded production of products and ends once the recYcled. (1.) Thephysica|,financiaIandinformationnetworksthatinvo|vethemovement through the full logistics of materials, (-1) funds and related information Processfromtheacquisitionofrawmateria|stothede|iveryoffinished includes atl vendors service products to the end-user The supply chain providersrcustomersandintermediaries(1)andendsoncetheproducthas been discarded or recYcled Retailers Manufac- resellers or turing Plant customers (I) (1) to examining the development of A varue chain: rs the systematic approach competitiveadvantage(1,)Itisatooltoidentifyhowmorecustomervalue channel (supply chain) can be created (I) in the distribution delivery and support (l) It formF part of the design, production marketing of products. Aschematicana|ysisusedtoidentifywhereincrementa|costsoccurand in a corporate structure (J) where more customer value is created @ Independent Institute of Education (Pty) Ltd 2012 Page 3 of 13
  • 2. N m N $ c) 6 ,i (, E 3 q tr o I o c o E o tu iE de 6+J .r lE i-c (, p to f6, trE .9 i ={: !(J =o t/,E Eo OQ .c - Eo 6E G - ,g (Jo N :o o ItL N 0(uEq6(.)q :E _o Jq .co vf c I -g co otr r:t! oo (uur G UfEIU 38 9f UJ o(J rhoo oo:of o.= SG : 9,.c EO >(,)c o.g CLE EE ;ru cL= oo cL> ,=> foCc)oc, ao iE (, o oc o
  • 3. - Assessment 2072Independent Institute of EducationI.2 Sketch the flow of the international distribution system for Coca Cola and briefly (10) explain with examPles. (LU 7. Source: strydom et al, 2oo9t p. 37. Provide 7 mark for each of the 5 steps indicated below and assign the other 5 marks as follows:) overseas franchisor: (J) would be the coca-cola company in the usA; (1) Local manufacturer: (l) would purchase the licensing rights to bottle coke in South Africai (1)o Local wholesaler: (-1) Would receive on nation-wide scale; (1)o Local retailer: (1) Anything from Pick n Pay to corner caf6s and spaza shops; (1.) consumer: (1) The stakeholder who purchases the product in, for example, a 34oml can. (1) {.$}sg*s*:* * *t w€r**x sxt{* s} * f"** c"$ tts * e-r:ii1 ri*::rL fliff.:l. i rr. @ Independent Institute of Education (Pty) Ltd 2012 Page 5 of 13
  • 4. Independent Institute of Education - Assessment 2012 1.3 There are three (3) main decisions a company must make in selecting its distribution structure: intensive, selective or exclusive. which one (1) of these three (3) have Coca Cola used in South Africa? Define the distribution structure you have selected and provide one (1) good reason why you know this is the distribution structure used? ()., (LU 7, Source: Strydom et al, 2OO9: pp. 6O-61.) Intensive distribution structure; (I) rntensive distribution involves the placement of products (usually convenience products) (1) in as many rocati ons (1) by using the optimum number of intermediaries possible; (1) coke is sold practicaily on every street corner in south Africa. (1) L4 What type of franchising model would Coca Cola have used in South Africa and whv? "/ rq (LU 3. source: strydom et al, 2oo9: p. llo. Award I mark for identification of the eorrect type of franchising and 4 marks maximum for the explanation,) Product and trade-name franchisingi (1) Because a sales relationship has been established between coca cola and Amalgamated Bottling rndustries (l) where the last mentioned is granted the right to sell coca colas product (r) in exchange for fees or royalties (l) as welf as the obligation to sell the franchisor,s product (1)- i,e. coca cola provides Amalgamated Bottling rndustries with the recipe (syrup) to make the product. (I)1.5 In south Africa, as a developing country, continued success of the cash-and-carry wholesaler would be evident. Provide two (2) reasons for thls and discuss usinq Coca Cola as example. (s) (LU g. Source: Strydotm et al, 2OO9: p, ll3.) Manufacturers are increasingly confronted with rising distribution costs (l) such as delivery costs and the high risk of credit provision, (l) which means they tend to foist these marketing functions on to the cash-and- carry wholesaler who is able to perform them more cheaply. (1) The smaller retailers are experiencing problems purchasing products from the full-service wholesalers because the latter do not sell small consignments. (1)@ Independent Institute of Education (pty) Ltd 2012 Page 6 of 13

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