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Q1: Assume that you have joined as the Chief Operating Officer in one of the leading supermarket chains in the country. The owners of the supermarket chain have asked you to increase the revenue and profits by at least 20 percent in a year’s time. You have decided to use “Innovative Pricing” as your key strategy for extracting more revenue and enhancing profits. Explain why innovative pricing is a good strategy in the above scenario? Discuss the concept of innovative pricing. How innovative pricing can be applied in a supermarket chain? In your opinion are there any other better strategies to maximize the profits? (10 Marks)
Q2: Information Technology (IT) has become an integral part of the modern supply chains. Select any single organization and discuss its strategic framework for IT adoption in a supply chain. What are the goals of IT in the organization’s supply chain? Discuss how IT applications are helping the organization in improving its supply chain performance. Explain the future IT trends in supply chain. (10 Marks)
Q3: In 2014, Mahindra & Mahindra Ltd (M&M) came out with its new sourcing strategy under which purchasing of components for all its vehicles was brought together under a single umbrella. This One Sourcing policy was a shift from the company’s existing model, where components for manufacturing automobiles, two-wheelers tractors and trucks were being sourced through various departments. M&M chief Purchasing officer, Hemant Sikka said “the new one sourcing strategy the firm adopted will help it reduce at least 2-3% of the cost of purchasing from component makers who supply parts to models across the segments and make its supply chain more efficient.”
(Source: Shally SethMohile, Mahindra to reduce supplier base as part of new sourcing strategy, Live Mint, http://www.livemint.com/Companies/lFOq6BpomNLkmJLIsPLRSK/Mahindra-to-reduce-supplier-base-as-part-of-new-sourcing-str.html, Oct 06 2014)
a. Using the example of M & M explain the various sourcing strategies. (5 Marks)
b. Discuss how the new strategy will help M & M in sourcing. (5 Marks)
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