Great job on this! The impacts of technology on products is definitely having a profound impact on how goods and services are provided to consumers. I think that in the digital age companies can’t be solely a product company or a technology company, but they have to be a mix of both where the dividing line is blurry, and in many situations absent altogether; it’s hard to know where one part of the business ends and another begins. This makes having well-rounded management even more important because specialization in either tech or product is not enough in the digital world we live in.
Great work Kamau! You followed the assignment, but worked it flawlessly into story form—such a fun read. I think the problem of investment in domestic manufacturing without negative ripple effects is a question that the US wishes they had the answer to right now. As you touched on, due to the low cost of labor and materials in other countries, there is an incentive to move manufacturing offshore, but putting in trade policies to counteract the problem can often have side effects that weren’t understood when the policy was enacted. As the shift toward globalization continues, it’s important for policy makers to understand and keep in mind that tariffs and other artificial blocks to globalization and free trade have other effects that often leave the people they were trying to protect worse off.
Great job! I’m a Sriracha enthusiast and have been enjoying it all this time without knowing any of the interesting background on the business. I’m shocked by the lack of preparation of Huy Fong in the face of climate change, but also shocked that their supply chain has such concentrated dependencies on counterparties. Sriracha should take the advice above in a hurry and diversify their supplier base and their manufacturing. It would be wise for Sriracha management to take note of Tabasco’s transformation as a case study if it wants to continue to play a role in the face of climate change and other unknown shocks to its feeble supply chain.
Great work! You really lay out the problem well and give some solid ways that management can combat this extremely important issue. I think the loss of international talent can’t be understated. It’s important that their lobbyist spend not only go to alcohol tarrif lobbyists, but to trade lobbyists as well that can hopefully have an impact on the new hiring rules that will go into effect post-Brexit. Also, I think regardless of Brexit, it would be wise to continue manufacturing products near their end markets with satellite plants. With current global trends, it’s very likely that other countries may enact isolationist trade policies and the more prepared Diageo can be for the unknown, the better.
Great job Kim! A good look at the implications of Amazon’s stranglehold on ecommerce and the impacts of shipping on their supply chain and the market’s expectations. I personally have seen a shift in my buying habits since quick (1-2 day) shipping has become standard practice. I used to go to the store when I needed something because a lot of times 3-5 business days is too long. Amazon changed the game by offering pretty much everything you could need with free shipping. I agree that the implications could be long lasting for ecommerce, because now consumers demand it. I know that whenever I shop elsewhere and have to pay for shipping or the shipping is slow, I’m much less likely to shop there again and Amazon’s death grip on my wallet gets a little bit tighter.