Supply Chain Management

A. Analyze whether a Keiretsu network, a virtual company, a vertical integration, or a different supply chain strategy should be adopted. A Keiretsu network is a network of businesses that own stakes in one another as a means of mutual security, especially in Japan, and usually including large manufacturers and their suppliers of raw materials and components. There are two types of keiretsu: vertical and horizontal. Vertical keiretsu illustrates the organization and relationships within a company, for example all factors of production of a certain product are connected. A horizontal keiretsu shows relationships between entities and industries normally centered on a bank and trading company. The two are complexly woven together and self-sustain each other. A keiretsu network would not be a viable option for this small power tool company. A virtual company perspective, a virtual business will employ electronic means to transact business as opposed to a traditional brick and mortar business that relies on face to face transactions with physical documents and physical currency or credit. In this context the company can use suppliers on an as needed basis a virtual online environment would be a worthy consideration for this company. Today however my concerns are where the sales markets of power tools are concerned it is found that customers like to touch and feel what they buy, due to that fact online sales for power tools are not very equitable. However a company that provides a website to provide customer service for the products the company sells would be a good alternative to consider because it could possibly boosts sales through customer confidence in the company’s products. Another alternative to consider involving using e-commerce would be to offer customized power tool products that are only available online and require a pre-ordering process. In the power tool market considering a virtual company only is not recommended however if adopted along

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