Supply chain management is aimed to help organizations deliver services at the best possible and cost effective way. Customers and products are separated in time, space, and ownership. The conduct of human activities presupposes the availability of an appropriate assortment of goods and services…
The case of restaurant managed by Ms Nok Si Leon shows that she is full of innovative and quality improvements ideas, thus some of them will not work in the airport setting. To present a total point of view, critics shall consider channels from the manufacturers' perspective, emphasizing their selection rather than the description of their components. Just the same, it should not be assumed that channels are always selected or devised on a rational basis. Many channels just grow and become habitual and institutionalized. In the future they must be planned more effectively because marketing tasks (which are shaped by technological changes, sociological and psychological factors, new product development, automation, and dynamic global markets) are becoming more complex (Naylor 2002).
The proposed two shelf lines will help Nok to meet customers' expectations and different tastes. It should be evident that differences exist between the organization and management of a channel as compared with that of an independent unit. Authority does not flow directly through each of the units from the top down. Resources are owned and allocated by a number of units. Objectives and expectations of units vary; and although interdependence of interests exists, there are also conflicts. The ideal relationship as seen by each member may shackle other members. In such instances, negotiation, bargaining, and requests for cooperation as well as power become tools of coordination.
Following Cohen and Roussel (2004) equilibrium in a channel depends on the development of mutually satisfying marketing relationships and roles among manufacturers, wholesalers, and retailers. The tie that binds and coordinates channel activity is the community of interest and independence that these groups share. Often the relationship is one in which the manufacturer is the primary organization and other channel members are secondary (Naylor 2002).
The most ineffective strategy is to divide the restaurant into two areas and "move" it divided line when necessary. It will create a lot of problems for staff and visitors. Basically, restaurants have three channel policy courses available to them -- intensive, limited, or exclusive distribution. Intensive or broad distribution gives maximum exposure; these are convenience items where easy and ready access is important. The problem they pose of widespread market penetration often requires wholesalers. Limited menus permits a choice of dealers more ready to cooperate with a manufacturer and promote his line. This approach permits the concentration of effort on selected outlets, and requires careful planning. Nok should rely on high quality but limited number of food proposed to customers (Naylor 2002).
For Nok, channel selection has great bearing on a company's financial requirements and market capability and vice versa. Given the total range of services supplied by a channel (the wholesaler, for example), companies are able to distribute to broader market areas and to expand their production capabilities. As distribution channels change, so do corporate financial requirements and resource positions. Manufacturers may establish a sequential plan for distribution based on their own development. For instance, a small manufacturer with a limited product line, limited finances, and geographically dispersed markets may use the full services of a wholesaler. As the manufacturer grows in financial ...
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