Case study: Modern Book Distribution, Inc. Case Study Evaluation

Based on the case, answer the following questions:

Part 1:

a. Should MBD implement a push strategy? A pull strategy? A push-pull strategy? What would it require to implement the strategy? What is the impact?

b. What distribution strategies are appropriate for MBD's businesses? What questions should MBD management ask when assessing these strategies?

c. How can MBD benefit from changes in the book distribution strategy?

d. What are the advantages to MBD in having fewer warehouses and a more centralized operation? More warehouses and a more decentralized operation?

Part II:

1. Consider a manager developing a logistics strategy. Discuss specific situations for which the best approach would be to:

a. Employ internal logistics expertise.

b. Acquire a company with this expertise.

c. Develop a strategy, and then employ the specific suppliers to carry out well-defined portions of the strategy.

d. Develop the strategy with a third-party logistics provider.

Part III:

1. According to Bill Paulk, IBM's vice president of e-marketplaces, "IBM has saved about $1.7 billion since 1993 by being able to divulge sensitive price and inventory information over a private exchange built for 25,000 suppliers and customers." As the host of the exchange, the company helped defray the cost of connecting suppliers. The payoff: On-time delivery to customers soared from about 50 percent to close to 90 percent, "which helped justify the cost," Paulk says. In 1999, IBM invested in E2open, a consortia-based e-marketplace for the electronics industry. Why do you think IBM needs both a private exchange and a consortia based e-marketplace?

Part IV:

1. You are the CEO of a small electronics manufacturing firm that is about to develop a global strategy. (20 points)

a. Would you prefer a speculative strategy, a hedge strategy, or a flexible strategy?

b. Why would you prefer the strategy that you selected?

c. Would your answer change if you were the CEO of a large electronics firm?

d. Why would your answer change or not change if you were the CEO of a large electronics firm?

Part V:

1. Discuss how supply chain management decisions impact the ability to excel in certain dimensions. Specifically consider: (20 points)

a. Conformance to requirements

b. Product selection

c. Price and brand

d. Value-added services

e. Relationships and experiences