Dansui

In: Business and Management

Submitted By parani
Words 908
Pages 4
Bargaining power of suppliers
Because of rapid growth in coffee industry the bargaining power of suppliers increased compare to 1980's. In the past farmers were not connected to each other so their bargaining power was low. Today majority of farmers are connected to each other by an initiative know as Fair Trade Certified Coffee which is designed by Transfair US. The purpose of this initiative is to ensure that farmers will get reasonable return on their crops and we can say suppliers are powerful today. But Starbucks has already made a long term contract with some of suppliers so supplier bargaining power will be less effective for Starbucks. In starbuck their bargaining power of suppliers is low because Starbuck already control as much of the supply chain as possible in market. Starbuck get highest-quality coffee in world, that sourced from the Africa, Central and South America and Asia- Pacific regions. It is because Starbuck have various suppliers so that they can negotiate with a reasonable price. Starbuck tak perlu resau tentang utk mdpt bekalan bahan mentah, jika salah satu supplier mereka tidak mau membekalkanya.ini adalah kerana starbuck mempunyai pilihan lainh utk suppy mereka bmentah.

PROBLEMS
Product innovation
New products were launched on a regular basis for example, Starbucks introduced at least one new hot beverage every holiday season, but its seems not meet their customers satisfaction. Refer to Exhibit 10, customers that satisfied with new and innovation beverages only shows 2nd last lowest percentage that is 13%. Its shows that customers not interested with new product innovation. The new product development process generally operated on a 12 – to- 18 month cycle, during which the internal research and development ( R&D) team tinkered with product formulations, ran focus group, and conducted in-store experiments and market tests this is…...

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Case 1 Danshui Plant

...flash memory, the cost of shipping will bear by Danshui. This is the reasons why the shipping cost is higher if compare to the budgeted cost. Lastly, the budgeted supervision cost is $127,000 while the actual cost is about $134,000 which cause an unfavorable cost of $7000. The unfavorable amount is occurred because the company was upgrading the security in the company by installing a new CCTV system in order to monitor the workers and process of product. In addition, Danshui also hired additional supervisor to guide the workers. 5 FLEXIBLE BUDGET Table 1 6 RECOMMENDATION Increase Labor’s Wages Based on this case, Dansui is unable to meet the units of production as targeted for the first three month. According to the report on August operation, Jianye Ma as the controller was found the major obstacle of this problem which is Dansui has difficulty in hiring enough workers despite raising wages over 30% to boost the productivity. The increment of salary for Danshui’s workers is lower if compare to the competitor which is increase 35% per worker. Danshui should rise up the salary for the worker to 35% in case to attract the worker to continue their work in the company. Generally, the labor is the most valuable assets in manufacturing industry. By increase the salary, it will indirectly give motivation to the workers to have more passion in their work Thus, the turnover of the business and productivity will be maximized. Giving Reward Next, the company......

Words: 2543 - Pages: 11

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