12. scanned, copied or duplicated, or posted to a publicly
accessible website, in whole or in part.
Source: Figure 4.7
Typical Retail Logistics and Marketing Channels
Logistics Channel
Marketing Channel
Supplier
Transport
Manufacturer
Transport
DCs/Fulfillment center
Transport
Retail store
Consumer
E-Procurement
National account sales
Wholesale/Distributor
Internet site
Retail customer
18. In pool distribution, small retailers use third party logistics
companies, or pool distributors, for store delivery, allowing
them to achieve efficiency of a truckload shipment for the line
haul and the effectiveness of allowing stores to receive LTL
orders on a regular schedule
Supplier Distribution Center
Picking
Ship TL, LTL
Retail Distribution Center
Picking
Pallet, Case, Each
Ship TL
Multiple LTL
Third Party DC
Mixing
Ship LTL
Ship LTL
Ship LTL
Ship LTL
Consumer
Delivery
Pick-up
Delivery
Pick-up
Pick-up
Delivery
Pick-up
Delivery
Stores
22. Retail Store
Consumer
Delivery
Pick-up
Picking
Picking
Pallet, Case, Each
Picking
Each
Ship TL, LTL
Summary
The strategic importance of supply chain network design
decision is growing with the increasing globalization of
manufacturing, marketing, sourcing, and procurement.
A formal, structured process for network design or redesign is
preferable to an informal, unstructured one.
Numerous factors may affect the design of a logistics network
and the location of specific facilities within the context of the
network.
Principal modeling approaches to gain insight into the topic of
supply chain network design include optimization, simulation,
and heuristic models.
In an omni-channel environment, many network models exist
that can be used to service retail stores and Internet consumers,
each of which has its advantages and disadvantages. Trade-offs
must be taken into consideration when deciding which network
model to use.
23. MSEL Strategy Mid-term Instructions
Miguel Rivera-Santos
Due by e-mail on or before Sunday, March 15, 2020, at
midnight EST
General Instructions
- You have over one week to complete this mid-term, but it is
designed to only take a few
hours. The reason why you have over one week to complete it is
to make sure that time
constraints are not an issue and that this mid-term does not
interfere with other courses or
assignments.
- This mid-term is an individual assignment. You should not
discuss it or consult with
anybody.
- The mid-term is due before midnight EST, on Sunday, March
15, 2020, and should be
sent by e-mail to [email protected]
24. - Mid-terms received after midnight will be penalized, the
penalty being one full letter
grade for finals received on March 16, 2019 between 12:01am
and 12:30am, two full
letter grades for finals received between 12:31am and 1:00am,
etc.
- The subject line of the submission e-mail should read “MSEL
Strategy Mid-term”. The
mid-term should be attached to the e-mail and consist of a
single pdf document, titled
“lastname_firstname.pdf”, e.g., “rivera-santos_miguel.pdf”.
Format of the Mid-term
- You will find three recent newspaper articles describing a
strategic move or a strategic
decision in this document. Choose two out of these three
articles and, for each of the two
articles you have selected, answer the following two questions:
- Q1: What is (are) the issue(s) for the main company in the
article? How do you
assess the company’s strategic decision(s)? What additional
information and what
specific analyses would you conduct to fully understand the
issue(s) and the
decision(s)?
- Q2: What alternative recommendation would you consider in
response to the
issue(s)? What additional information/analyses would you need
for this
alternative recommendation? How could it be implemented?
25. - For each article, the combined answers to these two questions
should be no longer than 2
single-spaced pages, in 12-point Times New Roman, with a 1-
inch margin all around.
You can add as many appendices as you feel necessary, but
remember that the page limit
for the mid-term (excluding exhibits) is 4 pages, i.e., 2 pages
per newspaper article.
- You do not need to seek additional information beyond what is
provided in the articles.
GOOD LUCK!
Automobiles
CHRISTIAN SHEPHERD — BEIJING
Geely is aiming to be the first China carmaker to design and
build satellites to support its autonomous
driving programme, the latest step by founder Li Shufu in his
bid to build an industry leader.
Geely, which owns Swedish brand Volvo Cars, Malaysia’s
Proton, and a stake in Mercedes-Benz owner
Daimler, will invest Rmb2.27bn ($325m) in a new development
centre and factory to manufacture
satellites this year, the company said yesterday.
The announcement makes Geely the first known Chinese
carmaker with plans to build its own satellites.
Mr Li’s move sparked comparisons in China media with Elon
Musk, founder of electric carmaker Tesla
26. and private space exploration company SpaceX.
Last month Geely drew comparisons with Volkswagen when Mr
Li’s holding group announced plans to
merge Geely Automobile and Volvo Cars, moving the company
towards becoming the first global Chinese
carmaker.
Che Jun, Communist party boss of China’s eastern Zhejiang
province, where Geely is based, said that the
complex would be built in Taizhou city and that construction
had begun.
The centre will design, test and manufacture low-orbit
communication satellites, purpose-built to improve
geolocation of vehicles and to support their connected
functions, Geely said.
Geely has been pouring money into new technologies from self-
driving cars to flying taxis, spending
Rmb20bn on research and development in the past year.
The investments are part of the group’s spend on global
expansion, such as buying a $9bn stake in
Daimler.
The announcement comes as the coronavirus outbreak in China
has deepened a downturn in its car market,
setting it up for a third consecutive year of declining sales.
Geely to build satellites for self-driving cars - Financial Times
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aspx?d...
1 of 1 3/5/2020, 11:45 AM
27. Google is exploring
financial deals to
license news and help
develop new
products to benefit
media brands
ALEX BARKER — LONDON
Google is talking to some of France’s biggest news publishers
about making
direct payments for content, a potentially significant shift by
the search platform
towards a model used by Facebook in the US.
Exploratory discussions with media groups including Le Monde
and Le Figaro
have touched on developing new products that would include
financial deals to
license news. Google has also spoken to some US media groups
about the plans,
according to people familiar with the matter.
“We want to help people find quality journalism — it’s
important to informed
democracy and helps support a sustainable news industry,” said
Richard Gingras,
Google vice-president for news, who said the group was
“looking at more ways to
expand our ongoing work with publishers”.
While the discussions are at an early stage and several models
are being considered, there are echoes with
28. Face-book’s recent shift in approach. In October the social
media platform launched a news tab feature in
the US following multimillion-dollar deals with outlets
including BuzzFeed, the New York Times and the
Wall Street Journal.
After years of lambasting big internet platforms for failing to
pay for content, Robert Thomson, the chief
executive of News Corp, described Facebook’s move as a
“powerful precedent that will echo around
editorial newsrooms”.
France is a test ground for Google’s change of approach because
of the fierce political reaction to its
response to the EU’s new copyright directive, which the country
is the first member state to implement. To
the anger of French ministers who denounced the approach as
against “the spirit and letter” of the law,
Google said it would show only headlines to news stories in
France, sidestepping the need to reach
licensing deals to pay for snippets of journalism. In the past the
group has warned that aggressive
application of the copyright directive could force it to withdraw
its news service from Europe altogether.
Google insists it will, on principle, refuse to “pay for links”.
But it has privately acknowledged to French
publishers that it wants to extend its support for journalism,
potentially through new products that would
give some brands greater prominence and reach as well as direct
income.
Additional reporting by Leila Abboud
Google in talks to pay French media for news - Financial Times
(US), 2/...
29. https://digital.olivesoftware.com/Olive/ODN/FTUS/PrintArticle.
aspx?d...
1 of 1 2/16/2020, 4:27 PM
Seconds away: AEW says it aims to attract a younger fan base
and advertisers
Travel & leisure. Sport
RHODRI MORGAN — LONDON
When
Shahid Khan, the Pakistani-American billionaire, took his 13-
year-old son to an Extreme Championship
Wrestling event in Philadelphia in 1996, he did not envisage
they would be launching their own wrestling
business 23 years later.
Tony Khan, with his father’s backing, launched All Elite
Wrestling in January 2019. A year on and the
Jacksonville-based organisation is proving a worthy opponent to
industry behemoth World Wrestling
Entertainment.
AEW aims to offer fans a calendar of compelling storylines
supported by a smaller roster of fighters,
relative to the WWE, featuring both big names and the next
generation of would-be superstars.
The approach has helped AEW win US and UK ratings battles
and secure big rights deals.
30. All Elite Wrestling enters the ring to grapple with WWE -
Financial Time...
https://digital.olivesoftware.com/Olive/ODN/FTUS/PrintArticle.
aspx?d...
1 of 3 2/16/2020, 4:57 PM
“Tony’s always been a big wrestling fan. A few years ago he
said it was the perfect time to start a
wrestling organisation. I thought the odds were very much
against us,” said Shahid Khan, owner of
English Premier League football club Fulham and the
Jacksonville Jaguars NFL team.
“As a parent, this is one of those times you’re glad you were
totally wrong.”
The sport’s dominant force is WWE, a listed company with a
history dating from the 1950s and annual
revenues of $1bn. It has had several incarnations, rode high in
the Attitude Era in the 1990s and last year
signed record broadcasting rights contracts.
But WWE lost more than $1bn in market value last month after
Vince McMahon, chief executive, fired
two top executives, citing “different views on how to best
achieve strategic priorities” in a move that
pushed the stock to its lowest level since May 2018.
In results this month WWE said annual revenues had climbed to
a record high driven by rights deals —
but revenue from live events fell 13 per cent to $125.6m from
$144.2m in 2018 as it cut the number of
events and average attendance fell.
31. Raj Giri, president of WrestlingInc, a website covering the
sport, said that “what AEW has been able to do
in its short time is unprecedented. But it’s not significantly
responsible for WWE’s waning popularity —
that was happening long before AEW was formed”.
Tony Khan said AEW was not seeking market hegemony,
instead offering a “different take on wrestling”
that had attracted a “fan base that is significantly younger than
our competitors” and which is “very
appealing to advertisers”.
AEW hosts live events and airs quarterly pay-per-view shows as
well as a weekly primetime Wednesday
slot for Dynamite, its flagship offering. Launched on TNT in
October, the show attracts an audience of
about 905,000, according to Nielsen data.
In anticipation, WWE moved NXT, which focuses on younger
fighters and is its third significant offering
alongside Smackdown and Raw, from its subscription streaming
service to USA Network, the national
broadcaster, in September. It has claimed viewership victory in
only two to three weeks since going head
to head, however.
“The old established competitor is now counter-programming
us,” said Shahid Khan. “It’s great, they’re
helping to grow the audience, which is what it’s all about. We
want to create a bigger pie and get a piece of
it.”
AEW last month announced an extension of its $175m deal with
WarnerMedia’s TNT to the end of 2023
and plans for another show. “I never believed we would be in
32. this position so early into year two,” said
Tony Khan.
He sees a lot to learn from industry forebears, particularly,
World Championship Wrestling. “I’m not
taking positive business lessons from other companies,” he said.
“Most of the lessons I’m taking are
examples of what not to do.”
Funded by Ted Turner, the CNN founder, WCW resurrected
wrestling’s southern style in the 1990s; an
antithesis to the borderline slapstick WWE (then WWF)
offering. Despite its flagship show Nitro winning
the Monday night ratings war against WWE’s Raw for 84
consecutive weeks from June 1996, its
popularity plummeted and the company was bought by WWE in
2001.
All Elite Wrestling enters the ring to grapple with WWE -
Financial Time...
https://digital.olivesoftware.com/Olive/ODN/FTUS/PrintArticle.
aspx?d...
2 of 3 2/16/2020, 4:57 PM
“The audience was there for those wars to go on for decades if
they had produced competitive shows and
run them logically, but that didn’t happen,” said Tony Khan.
“WCW was badly mismanaged. They teased
audiences with matches that never materialised and lost tens of
millions of dollars on talent, some earning
six figures without ever working. It was a real disservice to
fans.”
35. Managing a firm’s acquisition procedures and standards,
involving largely transactional activity of the buying of
products & services.
Purchasing is an activity that follows conduct of a formal
sourcing process, while procurement and strategic sourcing are
best described as processes.
Consolidation and leveraging of purchasing power
Emphasis on value
More meaningful supplier relationships
Attention directed to process improvement
Enhanced teamwork and professionalism
1
2
3
4
49. Sell-side system: Online businesses selling to individual
companies or consumers. Examples: Staples (www.staples.com),
Wal-Mart (www.walmart.com), CNET (www.cnet.com)
Electronic marketplace: A seller-operated service that consists
of a number of electronic catalogs from suppliers within a
market (one-stop sourcing site for buyers). Examples:
Expedia.com (www.expedia.com), Amazon (www.amazon.com),
eBay (www.ebay.com)
Buy-side system: A buyer-controlled e-procurement or e-
commerce service that is housed on the buyer’s system and is
administered by the buyer. Example: Elemica (elemica.com)
Online trading community: A system maintained by a 3rd party
technology supplier where multiple buyers & sellers in a given
50. market can conduct business. Examples: Travelocity
(www.travelocity.com), Priceline (www.priceline.com)
Summary
Different procurement and sourcing strategies devised based on
the risk and value or profit potential from needed
products/services that can be classified into: generics,
commodities, distinctives, and criticals.
Strategic sourcing process includes: develop strategic plan,
understand spend, evaluate supply sources, finalize sourcing
strategy, implement sourcing strategy, transition and
onboarding, and collaborative process improvement.
The concept of total landed cost is a highly-valuable element of
the overall procurement process.
Advantages of e-sourcing and e-procurement include lower
operating costs, improved efficiency, and reduced prices.
Four popular e-commerce model types are: sell-side, electronic
marketplace, buy-side, and online trading community systems.