How Close Is Too Close?
Question: How would you suggest Tim analyze this opportunity? Senior Vice President of supply chain management Tim Tree of Top Line, Inc. has to decide if being a partner is right for him. For Tree to make the proper decision he will need to list vital factors that will allow Dynamo and Top Line, Inc. to work as one. By strategically analyzing the short-term and long-term goals of Dynamo, Tree will see if the Dynamo organization will remain in a business with Top Line, Inc. for several years. He will see through evaluation of gains and losses if Dynamo will try to find another company that could possibly offer the same thing that Top Tree is offering. For the company to profit Tree will need to ensure that consumers are in the market for what is being offered if Dynamo does not partner with Top Line, Inc. For this to be accomplished Tree will need the help of those that work for him. Those that work the day-to-day operations of the company will are in the best position to tell him what they are observing, and if moving on will be the best choice. Question: What the implications of saying “yes”?
The implications of Tim accepting the offer from Dynamo to become one of their few “partner suppliers” is a perplexing situation for Tim, who is the Vice President of Supply Chain Management at Top Line Inc. There are tremendous positives for Top Line if they were to accept this offer, but there are also some negative considerations that could be significant.
The positive opportunities for Top Line include the commitment of Dynamo to Top Line as their sole source for their products. This means stability for Top Line with this customer and as Dynamo grows so grows the Top Line Inc. There are also great opportunities for engineering and technology sharing between the two organizations and this could be a strong addition to the Top Line group. An additional positive of this acceptance into the partner/supplier is that Top...
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