For using Liu-Sheng Trading as a sole source of supply, Red Fish, Blue Fish would stand an opportunity to establishing credit account and have more favourable credit terms. •Exceptional or distinguished treatment Due to the established business relationship and loyalty, Red Fish, Blue Fish would stand an opportunity distinguished treatment than any other customer e. g prioritisation of service, stock reservation. •Consistent quality standard Through the use of one supplier Red Fish, Blue Fish would have consistent quality of their products. Standardized products Through the use of one supplier Red Fish, Blue Fish would have customization of their products. Liu-Sheng would take their inputs for the improvement of products into serious consideration and for implementation. •Alliance Red fish would stand an opportunity to form an alliance with Lui-Sheng in the long run. This alliance would be of mutual benefit to both parties. •Share ownership In a long run Red Fish, Blue Fish can buy shares from Lui-Sheng and vice-versa. 1. 2Disadvantages •Loss of sales when Liu-Sheng runs out of stock
When there’s stock in Liu-Sheng there would be stock out in Red Fish, Blue Fish and since there would be no alternative supplier to them this would lead to loss of sales. •Loss of sale when Liu-Sheng delivers incorrect supply or quantities When there’s stock in Liu-Sheng there would be stock out in Red Fish, Blue Fish and since there would be no alternative supplier to them this would lead to loss of sales. •Loss of business when there’s quality problems in Liu-Sheng production line When there are quality problems in Liu-Sheng business that would put Red Fish, Blue Fish business on halt since there’s no alternative supplier. Loss of business when Liu-Sheng business runs into production problems When there’s no production in Liu-Sheng that equate to no business to Red Fish, Blue Fish and loss of sales. •Close down or force majeure damages to Liu-Sheng translate to halt of business to Re Fish, Blue Fish When there are catastrophic damages to Liu-Sheng due natural forces e. g earthquakes, floods and they close down that can put Red Fish, Blue Fish out of business while they do market search for the suitable substitute supplier. 1. 3Recommendation It is recommended that Red Fish, Blue Fish establish a network of suppliers to ensure that there are back-ups.
The Essay on The New Blue Ibm Business Palmisano
About IBM: The Big Blue IBM's history dates back decades before the development of electronic computers - Big Blue was officially born in 1911 as the Computing-Tabulating-Recording Company, a conglomeration of other companies that started in the 1880 s. Since then, the company has been instrumental in the development of mainframes, calculators, personal computers, networking, software, and several ...
Red Fish, Blue Fish might rank its suppliers according to preference, have different transportation mode agreement so that during time of need urgent supply will be no problem. 2. What supply challenges would Red Fish, Blue Fish face in expanding into South America? Do you recommend expanding aggressively into South America? Why or why not? 2. 1Challenges that Red Fish, Blue Fish will face in South America •Poor transportation infrastructure Physically getting their products to the right market areas could be a serious challenge.
Generally some regions in the South American are known of having weak and underdeveloped rail networks and roads. For transportation purposes good infrastructure is crucial, e. g multi options rail routes and roads. •Population demographics Large number of population lives near the coast in concentrated areas in South America, this pose a potential challenge in terms of customer service. Red Fish, Blue Fish ought to do proper population demographics analysis and profiling, cost-benefit analysis of expanding to South America than to establish alliance with a local entity that is already established. Restrictive foreign capital rules Red Fish, Blue Fish need to fully understand this constraint before deciding to fully expand to South America.
The Essay on Movements in North America and South America
When one compares the independence movements in North America and South America one would see a lot of differences and similarities between the two. The major differences were probably due to different geographical aspects of the two continents. Along with this, there were also variations among the societies. Although there were a lot of differences between the movements towards independence, ...
Generally South America is known of low labour costs, so they are vigilant of exploitation, so foreign companies that intend to expand business to there need to understand the imposed constraints. •Ports and border gate clearance take long Ports and border gate clearance can be a length process. So big fish, red fish in South America will need to keep high levels of inventory which they are not used to that and this could be a challenge, given their business model. Limited air transportation to few airports South America is vigilant of terrorism, since there was attack of U. S in 2001. Red Fish, Blue Fish in South America will need to keep high levels of inventory which they are not used to that and this could be a challenge, given their business model. 2. 2Do you recommend expanding aggressively into South America? Why or why not? Incremental expansion to the South American market is recommended. •Selecting locations for key depots and distribution centres Red Fish, Blue Fish need to first identify key depots and distribution centres in South America and run a pilot study.
After the evaluation of effectiveness, then they can consider further incremental roll out of the business in this manner. •Evaluating transportation alternatives and channel intermediaries Red Fish, Blue Fish need to do thoroughly transportation alternatives evaluation, obviously particularly considering reliability, efficiency and costs, inclusive of the packaging requirements. Also evaluation of channel intermediaries is equally critical. These will influence how the business brings in the inventory for South American operations. Understanding government influences on the businesses in South America They need to understand the imposed constraints by the government to foreign businesses in South America. Government set different rules to the local and foreign businesses in the countries. Red Fish, Blue Fish need to be know these and their long term implications. •Understand local business Red fish need to understand business ethics and operations in South America. They need to start small and grow big when they are there.
The Business plan on Blue ocean strategy
The concept of blue and red oceans is used to describe the market universe occupied by business. The red ocean consists of all industries which are currently in operation. In this business universe, the boundaries of industries are defined as well as widely accepted. This business world is characterized by high competition as companies try to outdo their rivals. Increase in competition crowds the ...
