In regards to the threat posed by the customers we

This preview shows 7 out of 10 pages.

In regards to the threat posed by the customers, we think it is unlikely that a consumer will take the step to return his/her shoes to the store just in order to have it recycled. Some may do it but they represent a minority within our customers.
Image of page 7

Subscribe to view the full document.

8 Change in Sourcing General idea : New kind of production in Portugal New organizational culture Link to the company strategy : Industry as green as possible by producing closer from our clients and in fact reduce gas emission. The idea is to have a sustainable production and be an actor of a responsible market. Strategic plan/ importance - Opportunities : We know, in terms of innovation, that we need to stay a major actor in this industry. So we thought that, by reducing transportation costs, we could avoid delays and avoid having stocks abroad. The major opportunity of this new kind of production is the “Made in Europe”, which means quality for many people in this area. Hence, in order to pursue this change, we will need to hire suppliers in Portugal. Indeed, “Made in Portugal” shoes are not affected by the current crisis, despite the worldwide context (17% growth of this industry in 2011; thanks to the sales abroad). By producing in this world’s region, we should also get some financial help from the European government. Moreover, shoe production is Portugal’s specialty (Portuga l produces 80 to 90 million pairs of shoes every year). They have the expertise and of course a “leader position” while their main competitors are Italy and Spain. The main advantages of Portugal are the industry diversification, their new technology, their “know how”, the research qualit y and a very qualitative workforce. In addition, producing in Portugal will reduce all FTA concerns because of Free circulation of goods within Europe. Main points: - Reduces transportation costs, stocks abroad and delays - Quality - > “Made in Europe”; Hir e suppliers in Portugal “Made in Portugal” shoes are not victim of the crisis despite the worldwide context (17% growth of this industry in 2011; thanks to the abroad sells) - European government help - Shoes production: Portugal specialty: Portugal is producing 80 to 90 million of pair of shoes every year: expertise, leader position - Principles concurrent: Italy and Spain - Less FTA concerns: Same legal system
Image of page 8
9 Eventual problems: Integration in the country Lack of trust in suppliers Contract negotiation Environmental complexity Budget and time constraint Long time and stable project over years The sector´s professionals have faith in the future. Manufacturers of shoes are planning to make €60 million of investments these next 3 years to modernize their production lines. Supplier’s ranking The method used is a supplier’s ranking using the Weighted model (for non -financial criteria) and NPV (for financial criteria) The idea is to find a supplier in the shoes industry region, which is between Porto and Braga.
Image of page 9

Subscribe to view the full document.

Image of page 10
You've reached the end of this preview.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern