CASE 1-1
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Central Transport, Inc.
Jean Beierlein, president and CEO of Central Transport, had just met with Susan Weber, the new president and CEO of SAB Distribution. Jean had recently closely with the former CEO of SAB Distribution when SAB had transferred its operations about seven years earlier to respond to changes in its competitive marketplace. Now, Susan was faced with new challenges and wanted the collaboration of Jean and Central Transport to transform again.
According to Susan, she had met extensively with the old and new member of her executive term (several old times had left the organization when Susan had announced her planned changes) and had developed a tentative plan for modifying the strategic direction of SAB. Susan was convinced that SAB could attract some larger retailers in the mid-Atlantic states if it changed its business model to add services similar to third-party logistics companies, namely, warehousing, transportation delivery, and inventory management. However, Susan felt that she needed a major collaborator with experience in these areas. She also felt that it would be better if the collaborator was a company SAB had worked with previously on a successful basis and was willing to take on some new challenges.
Susan had decided to approch Wegmans Food Markets, Inc. as the final customer for these new services. Wegmans was a very successful company in the Northeast that was privately owned and had expanded carefully into new market areas over the last 10 years. It offered more value services to its customers, including an in-store bakery, deli, more take-out options, and in-store cooking demonstrations.
Susan was convinced that Wegmans had to be price competitive also to continue to grow in-store sales and expand its market opportunities. She felt that Dan Wegman would listen to her proposal to offer expanded services to help his company be more competitive. Now, she wanted control to join with SAB in making Wegmans a proposal.
Jean wants your help in developing a positive response to Susan.
_______________________________________________________________________
CASE QUESTIONS
1. Why and how had the competitive market place for SAB changed in the last five to seven years?
2. What advantages might Central experience to the proposed new venture?
3. What issues would SAB and Central face in the proposed new approach?
CASE 1-1
____________________________________________
Central Transport, Inc.
Jean Beierlein, president and CEO of Central Transport, had just met with Susan Weber, the new president and CEO of SAB Distribution. Jean had recently closely with the former CEO of SAB Distribution when SAB had transferred its operations about seven years earlier to respond to changes in its competitive marketplace. Now, Susan was faced with new challenges and wanted the collaboration of Jean and Central Transport to transform again.
According to Susan, she had met extensively with the old and new member of her executive term (several old times had left the organization when Susan had announced her planned changes) and had developed a tentative plan for modifying the strategic direction of SAB. Susan was convinced that SAB could attract some larger retailers in the mid-Atlantic states if it changed its business model to add services similar to third-party logistics companies, namely, warehousing, transportation delivery, and inventory management. However, Susan felt that she needed a major collaborator with experience in these areas. She also felt that it would be better if the collaborator was a company SAB had worked with previously on a successful basis and was willing to take on some new challenges.
Susan had decided to approch Wegmans Food Markets, Inc. as the final customer for these new services. Wegmans was a very successful company in the Northeast that was privately owned and had expanded carefully into new market areas over the last 10 years. It offered more value services to its customers, including an in-store bakery, deli, more take-out options, and in-store cooking demonstrations.
Susan was convinced that Wegmans had to be price competitive also to continue to grow in-store sales and expand its market opportunities. She felt that Dan Wegman would listen to her proposal to offer expanded services to help his company be more competitive. Now, she wanted control to join with SAB in making Wegmans a proposal.
Jean wants your help in developing a positive response to Susan.
_______________________________________________________________________
CASE QUESTIONS
1. Why and how had the competitive market place for SAB changed in the last five to seven years?
2. What advantages might Central experience to the proposed new venture?
3. What issues would SAB and Central face in the proposed new approach?
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