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Inspiral: A Contrast in Operations Strategies
One of the first local manufacturers of screw caps in Chile, INESA expanded rapidly in the region. By 2015, the company had achieved almost 55% market share in the domestic wine sector and 21% in South America, focusing on Chile, Argentina, and Brazil. After more than 40 years in screw cap manufacturing and technical customer support, INESA was acquired in 2017 by RMD Group, which forged a new path to consolidation in the international market. Inspiral was established in 2018 to represent the company's strategy regarding innovation and internationalization. Along with Ramondin (an RMD Group capsule manufacturing brand), Inspiral was a specialist in designing, manufacturing, and packaging a complete portfolio of fastening products for wine, champagne, and spirits bottles. By the end of that first year, two challenges confronted Inspiral: (1) Rapid expansion in the national wine market had seen a similar rising need for quality and low-cost screw caps. As a leading manufacturer of screw caps in Latin America, Inspiral had to create additional value through its strategic positioning and operational excellence. (2) Although Inspiral had the dominant market share, its position was threatened by the possible entry of the Polish company Zakretka, a major international player, into Chile, Inspiral's home market. The case study asks students to compare the competitive and operating strategies of the company and its rivals. In addition, it requires a competitive trade-off analysis of the two companies and the specific operational changes Inspiral needs to remain competitive in the international market. -
Inspiral Student Exhibits XLS, Spreadsheet
Spreadsheet Supplement for Case KE1199 -
Kaffee Kostuum: A Dilemma in Retail Financials
Kaffee Kostuum is a short case that introduces inventory and supply chain management and its financial impact. The case provides a simple context for examining basic inventory performance measures to improve operational, as well as financial, performance. The case has three parts: (1) analyzing reordering decisions, leading to the economic order quantity (EOQ) model and corresponding cycle stock levels; (2) investigating the effect of demand uncertainty, leading to the concept of safety stock; (3) and analyzing the impact of various supply-chain redesign initiatives, such as product rationalization, reshoring, and physical centralization, to reduce inventories. The case shows how the EOQ model can be applied in a multiproduct environment, and it relates safety stocks to forecast accuracy. Indeed, although the classic formula for safety stock setting uses standard deviation in demand, it is, in essence, the forecast error that drives the need for safety stocks. The case also facilitates the understanding of the trade-offs inherent in defining an operations and supply chain strategy. It shows that it is difficult to compete in all dimensions simultaneously (here: variety, price, and responsiveness) while making a profit. One might have to choose which dimension to give up in favor of more focus and improved financial performance.