Question 1
Charles Fine (1998) stated that companies can integrate with a similar corporation in the industry through acquisitions. The aim of the acquisitions is to expand, diversify the products, and achieve economies of scale. Bergerac can acquire a company in the industry. Through the acquisition, Bergerac can expand and diversify its items in the market. Basing on the case, the company can acquire Genitech Corporation to enhance its operations. The case has adopted the vertical type of integration. Bergerac Corporation will benefit from acquisition because they will save the costs of purchasing new equipment. The company will not make more investment in the core competencies for operating the cartridge machine. Further, the corporation will not make investments on competences of the supply chain. The acquisition of Genitech Corporation will increase competition in the industry. The production costs will decrease and many companies will venture into the industry. Consequently, the competition in the industry will increase (Rebs & Brandenburg, 2018). The vertical form of integration increases competition. A company should adopt the horizontal rather than vertical integration during acquisition.
Question 2
McCarthy recommendations will influence the bullwhip effect where the company can hold excess inventory. The costs that are used in the management of inventory will increase. The inventory costs increase because the company is willing to meet the needs of the clients in the supply chain process. An increase in the inventory costs leads to a low utilization of the distribution networks that link the manufacturers and consumers. The company an encounter challenges in stock-outs due to the bullwhip effect ( Carranza & Villegas, 2006). Consequently, the company can lose its customers and decrease its sales. The bullwhip effect causes poor communication in an organization. The bullwhip effect disrupts communication between the manufacturers and customers. As a result, the inventory increases because the company cannot distribute the products to the consumers due to poor communication. The company will make losses because it is not distributing the goods on time (Carranza & Villegas, 2006) . McCarthy’s recommendation can increase the quantity of discounts due to excess inventory in the company. The company will increase the quantity discounts to attract customers to purchase the inventory. On the contrary, the quantity discounts can reduce in cases of stock-outs.
Delegate your assignment to our experts and they will do the rest.
Question 3
The supply chain course has assisted me to identify the importance and application of distribution networks. I have realized that distribution networks are essential in enhancing the supply of goods to the customers. Through the establishment of the distribution network, the customers and manufacturer communicate effectively. The customers receive goods on time through the establishment of supply chain networks. I can identify the risks or challenges in the distribution network and the possible solutions. The major risk in the distribution networks is poor communication. In this case, the manufacturer can supply the wrong goods of different type or quantity. The other risk is inefficient supply chain networks which affect the whole process. The solution to the main risk is the incorporation of a communication network in the company. The second recommendation is that an organization can establish an efficient distribution network. After completing this course, I have gained skills in creating a distribution network. I can create a distribution network for any organization.
References
Top of Form
Carranza, T. O. A., & Villegas, M. F. A. (2006). The bullwhip effect in supply chains: A review of methods, components, and cases . New York: Palgrave Macmillan. Bottom of Form
Fine, C. (1998). Clockspeed, Winning Industry Control in the Age of Temporary Advantage, Perseus Books, Reading, MA, ISBN-10: 0738201537
Rebs, T. & Brandenburg, M. (2018). Stakeholder influences and risks in sustainable supply chain management: A comparison of qualitative and quantitative studies. Business Research, 11 (2), 197-237.
