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Cases

Members:

•  Yamili Leon

•

Guillermo Apaza

Pepsi-cola US Beverages

1.- Of course, because if we beginning with a pilot in a small área we reduce

the ris, lie !rad"s drin, as #epsi-$ola was a%ectionatel& called b& locals, was

an immediate success.

Also, it would be better because it allows to now the tastes and preferences of 

consumers, rather than maing a large in'estment without ha'ing nowledge

of the maret.

(.- )irst, the compan& must ha'e a management philosoph&. *n the case of

#epsico, according to the philosoph& of decentralization is that other plans are

de'eloped.

 +herefore, we thin it is better to ads before to ha'e a clear obecti'e rather

the perform them after.

Also, if we sa& what we do win, trust and credibilit&.

.- +he compan& must surround people who now the business. *n case, all

presidents were directl& related to the line of business that is selling drins.

*t"s true that must be the most uali/ed of them, but each has a function that

is to e0pand marets alwa&s following the same strateg& and /nancial control

of the corporation.

.- )irst, we ha'e to eep rede/ning our core business we must wor line b&

line because the& are di%erent t&pes of businesses.

And, we must gi'e autonom& to each president so he can mae his own

decisions in accordance with the obecti'es of the corporation.

2nderstanding the t&pe of business in which we are help us to /nd new and

better opportunities and to e0pand our maret.

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3e thin that pre'enting change in the maret is better than reacting to

changes that ma& occur in the business. +he change is the e& source of

competiti'e ad'antage.

Case 2 – De Beers

1.- Oppenheimer bought out the s&ndicate, 3hich !ecame 4e !eers5 $entral6elling Organization. *t was the distribution arm. +he $6O continued to

purchase diamonds in order to +heir #re'ent them from 7ooding the

maretplace.

 +he sightholders had to obe& a set of stringent rules to #articipate *n these

salts. +he& could not uestion the uantities or grades of diamonds in their

parcels e'en if the contents were 'er& di%erent from what the& had reuested.

*t 8onitored Also at each stage diamond in'entories of distribution. +his

information 9elped the $6O adust the uantit& and mi0 of diamonds +hat it

released. !ecause of 6uch Adustments, the +otal 'alue of a $6O sight b& afactor 8ight 'ar& of two to si0 month period 3ithin.

 

(.- +he economic disruptions of the 1:;

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1.- +he president of +ombow #encil $o., Ltd, was facing a pro/tabilit& problem.

6ales of their products were incresing while their pro/ts were decresing. +he&

didn5t ha'e e0planation for this.

6ince 1:B, the compan& produces ballpoint pens for winning maret in the

writing instrument industr&. +he& ha'e introduced new products since then, it

was maing more coordination problems in the compan&.

4uring 1::< +ombow introduced new products, one of them was the obect CO

? Crgonomic Orb@, for winning maret and get better pro/t margins.

 +heir e& managers identi/ed some problems about the stocouts and the

in'entor&, the& were caused for their new product, Obect CO.

*n meetings, people engaged in the production of their products don5t tr& to do

their best. On the other hand, their big-cit& retailers are getting sic of late

deli'eries.

(.- +he performance of the production s&stem used to produce the obect CO

has their incon'enients. )irts of all, there are so man& parts in'ol'ed in thiswhole chain,that maes the production slow and the demand of their products

bigger than what the& can produce b& &ear. One point that could be positi'e is

the customization of their products. *nspite of all, what the compan& needs is to

get more sales in their industr&. *t will be better to mae a 'ertical integration.

 +his is going to mae the production faster and increase sales of obect CO.

.- +ombow should tae the plunge and start looing at large. !ut there is a

problem between producing more pencil or maintain ualit&. A +ombow what

has alwa&s characterized the ualit& of its products, so it would ha'e tomaintain and increase the 'ariet& of products.

!ut we belie'e that 'ertical integration, both with suppliers and distributors,

would help better integrate the chain both production and suppl& to the end

consumer.

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*n addition, with a proper 'ertical integration could increase production of their

products and reduce costs to be more competiti'e.