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.
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?
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 along with synergy and also cost efficiency. Besides, companies might create or develop a global brand by using standardization and it makes them easier to identify and remember. Furthermore, through standardization, company could skilled more efficient in their planning and their controlling in the supply chain. Standardization could save money by reducing expenses associated with supply chain activities. In additional , company can create overall cost leadership which means the company offering the same or better quality product or services at a price that is less than the competitor is able to do.
In my opinion, I think Coke will not charge the bottlers for the software services. Firstly, when Coke charges the bottlers, this might lead the bottlers to ignore and not to use the software to avoid themselves from the services charges. As a result; this could bring a big impact toward Coke itself and will damage the relationship with the bottlers. With the software services, it can improve the quality and the performance of the bottlers and Coke itself. When the company quality is improved and the costs is low, Coke profit will automatically increased .Besides that, with the profitability, Coke can cover up the costs of the software services and can improve the quality of the bottlers and themselves. This is something called a ‘Win Win Situational’ that means both party will gain the benefit from the decision; which Coke will gain in their
profitability and the bottlers will gain in the software services without paying. In additional, this may lead to a good relationship and understanding between the bottlers and Coke through the software services.
Describe two different forms of e-collaboration in this case study. For each, articulate the benefits to Coke.
The two different forms of e-collaboration are social networking with social networking systems and work activities with integrated collaboration environments. In social...
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