This preview has intentionally blurred parts. Sign up to view the full document

View Full Document

Unformatted Document Excerpt

1-32 Now Problem that you know of the chips faults, what should you disclose and to whom should you disclose it? The fact that they are faulty, how they are faulty, and what can be caused as a result is what needs to be disclosed. The first people that need to be told are the management team with in the company, as well as investors. Seeing the brand image and brand value of my company I will make sure that all the faulty information should be informed to the distributors as well as to our retail chains or stores who are selling our products and it has to be made sure that such memory chips which are faulty those products should not be sold to any customers. To any customers that have already purchased them, we need to do a recall and replace the faulty chips free of charge under the recall. Problem 2-55 Where does this program fit in the Harley-Davidson value chain? From a value chain perspective, how does the Riders Edge program at Harley-Davidson support the firms strategy? It fits into the bottom two steps: Step 7: Retail Sales Step 8: Customer Service I would also say that it fits into the downstream, which goes along with linking to customers (Blocher, 2010). I believe that it fits their strategy because they want to make products that are a great fit for all kinds of users. They also want to make sure that customers are riding safely. This too helps in the strategy to change the image that the company has, that they want to get rid of. This will hopefully show potential customers that it is a product is that worth the wait, and that they care about their customers, and are safety minded. Problem 3-50 What specific executional cost drivers are important in this business? How should the firm use them to improve its sales rate? I believe that the cost drivers in this situation are having too many employees. With this being an internet business that is just starting out, there is no need to have this many. They should look at how many employees they really need and layoff the rest. There are probably many employees that could do more than just one job which would help them downsize. As business picks up and they start seeing profits they can slowly start adding employees back in. Problem 3-51 Identify the important structural cost drivers for the company and the related strategic issues that it should address to be competitive. One of the first things that I see as a structural cost driver is that the menu they have is manageable for them. By adding more to it they may not have the amount of experience that they need to take on adding so many new things. It also is going to bring up food costs as well. They should bring in one thing at a time to add to the menu. This may allow for the customer base to grow and allow them to learn each new item at a time instead of all at once. It will help them to continue to offer what they always have and start to branch out. References Blocher, E., Stout, D. E., & Cokins, G. (2010). Cost management: a strategic emphasis (5th ed.). Boston: McGraw-Hill/Irwin. ... View Full Document

End of Preview

Sign up now to access the rest of the document