個案資料

On April 24, 2019, the founder and owner of Lifely Wellness Ltd. in the village of La Jolla, near San Diego, California, received a call from a customer who wanted to purchase some Jordan’s Oil, Lifely Wellness Ltd.’s best-selling product. Jordan’s Oil was an activated hemp-based cannabidiol tincture named after the founder’s son. However, the shop could not supply the product immediately to the customer because the delivery from its supplier was late—again. The founder had been investigating possible alternative sources of supply and wondered whether this was the right time to act. After sourcing two new suppliers, she faced a pressing business operations dilemma. Should she continue working with her current supplier, which controlled a significant part of the supply chain? Or should she develop a new relationship with one or two smaller suppliers? The founder knew that this decision could determine the future and survival of her operation; therefore, she needed to take an in-depth look at her business options, from a strategic perspective.

<p align="justify">This case is suitable for undergraduate and graduate-level courses on operations management and strategic supply chain management. The case is also useful for entrepreneurship courses at the undergraduate level. At its core, this case is about how a micro business with little power in the market makes a strategic supplier switching decision that is consistent with its strategic priorities. The case asks students to use theories and concepts—such as the five dimensions of competitive priorities and the sand cone model of cumulative capabilities—to identify the operation’s strategic priorities. Students are encouraged to select one or more strategic suppliers that would facilitate the achievement of strategic objectives. Students must participate in a strategic choice with three options: continue working with the incumbent supplier and negotiate different terms, switch to one or more new suppliers and adopt a multi-sourcing strategy, or work with both new and incumbent suppliers. After working through the case and assignment questions, students will be able to<br><br><ul><li>become familiar with the challenges of operating a micro business in an unregulated market;</li><li>think proactively about the operations strategy of a micro business and identify its strategic priorities; and</li><li>evaluate the supply base available to a micro business and identify the trade-offs in selecting one supplier over another.</li></ul>

• Lifely Wellness Ltd.
• La Jolla
• San Diego
• Jordan's Oil
• hemp-based tincture
• cannabidiol
• supply chain
• operations management
• strategic supply chain
• micro business
• strategic priorities
• competitive priorities
• sand cone model
• cumulative capabilities
• supplier switching
• multi-sourcing strategy
• unregulated market
• entrepreneurship
• business operations
• incumbent supplier
• supplier management
• healthcare