Structure_and_Strategy-1

Structure_and_Strategy-1 - Strategy and Structure M. Bixby...

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Michigan State University, 2008 M. Bixby Cooper Associate professor of Supply Chain Management Michigan State University Strategy and Structure
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Michigan State University, 2004 - 2 - Michigan State University, 2008 Customers Retailer s Distributors, exporters, importers Raw metals mills Standard metal parts (e.g., gears) Fabricated metal parts Movement assemblies Wristband manufacture Bezel fabricati on Glass suppliers Leather tannery Final assembly and packaging Tier 3 Tier 2 Tier 1 Animal processors Sand, silicon mills Packaging materials Dealers Customers On-line customers Echelon 1 Echelon 2 Indirect goods Supply Chain Example
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Michigan State University, 2004 - 3 - Michigan State University, 2008 Why Not Do It All Yourself? The Early Ford Model: Insource/Vertically Integrate Advantages Control Insulates scarce resources More direct influence on delivery and quality More comprehensive planning and coordinated scheduling Competition Creates barriers to entry Improved market information Costs More complete use of resources Avoid transaction costs Reduce supplier risk premiums Disadvantages Compatibility Incompatible strategies and infrastructure Diverts attention away from core capabilities and markets Breakeven volume and production may rise Competition Creates exit barriers Reduced flexibility Costs Increased overhead, planning and logistics costs
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Structure_and_Strategy-1 - Strategy and Structure M. Bixby...

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