My Coke Rewards
Question 1
Describe the various IT-enabled initiatives discussed in this case study and categorize them as either above-the-line, below-the-line, or some combination of the two.
Answer:
From the case study paragraph two, ‘a multitude of IT systems are constantly churning in the background, not only keeping the organization running, but also keeping it running ahead of the competition.’ In Run-Grow-Transform framework is similar in many ways to both Porter’s three generic strategies and an above-the-line versus below-the-line approach, run=overall cost leadership=below the line. A mature organization like Coca-Cola with a well-defined and successful line of products and services will often focus more on the run aspect. The organization may already be a market leader and want to ensure and sustain its competitive advantage through price and cost optimization. Cost optimization is one of the ways to minimize organization expenses and is considering under below the line approach. The other IT-enabled initiative is also categorize under below the line approach. The new and innovative IT steps rolled out a new line of software services that create standardization. Standardization in this case equates to saving money by reducing expenses associated with supply chain activities. Thus, in this case it support a below the line strategy.
Question 2 Why standardization so important in supply chain management? Coke is developing its own set of software services for bottler to use. Do you think Coke charges the bottlers for these software services? Why or why not?
Answer:
Standardization means, the condition in which a standard has been successfully established or to make activities of the same type to have same features or quality. Why is standardization important in supply chain management? Firstly, with the standardization in supply chain management, it able to lower downs the costs, to increase the quality of the system and to develop economies of scale
Describe the various IT-enabled initiatives discussed in this case study and categorize them as either above-the-line, below-the-line, or some combination of the two.
Answer:
From the case study paragraph two, ‘a multitude of IT systems are constantly churning in the background, not only keeping the organization running, but also keeping it running ahead of the competition.’ In Run-Grow-Transform framework is similar in many ways to both Porter’s three generic strategies and an above-the-line versus below-the-line approach, run=overall cost leadership=below the line. A mature organization like Coca-Cola with a well-defined and successful line of products and services will often focus more on the run aspect. The organization may already be a market leader and want to ensure and sustain its competitive advantage through price and cost optimization. Cost optimization is one of the ways to minimize organization expenses and is considering under below the line approach. The other IT-enabled initiative is also categorize under below the line approach. The new and innovative IT steps rolled out a new line of software services that create standardization. Standardization in this case equates to saving money by reducing expenses associated with supply chain activities. Thus, in this case it support a below the line strategy.
Question 2 Why standardization so important in supply chain management? Coke is developing its own set of software services for bottler to use. Do you think Coke charges the bottlers for these software services? Why or why not?
Answer:
Standardization means, the condition in which a standard has been successfully established or to make activities of the same type to have same features or quality. Why is standardization important in supply chain management? Firstly, with the standardization in supply chain management, it able to lower downs the costs, to increase the quality of the system and to develop economies of scale