Nolan Anderson, chief technology officer of Auxe, a service-based tech company, needed to identify profitable growth opportunities following sluggish performance. Auxe operated a two-sided marketplace, like Uber Technologies Inc. or Zomato, connecting technicians with customers for TV installations. Contractors were used to drive growth, which led to some quality control issues. Anderson was considering three strategies: expanding products by offering home camera installations, targeting a new customer segment by bidding for the digital signage needs of 7-Eleven Inc., or expanding into the US market. Anderson had until the end of the week to develop a recommendation and action plan to present to the executive team.
In November 2020, VF Corporation (VF) acquired streetwear brand Supreme for US$2.1 billion. Following the acquisition, VF faced significant operational challenges, leading to a substantial drop in stock value and to pressure from activist investors to streamline its brand portfolio. Supreme had struggled to integrate into VF’s larger corporate structure, failing to meet growth targets amid supply chain disruptions and shifts in retail and digital strategy, which had raised concerns about diluting the brand’s exclusivity.<br><br>Bracken Darrell, VF’s newly appointed chief executive officer, had to decide on the operational strategy for Supreme ahead of a critical investor meeting in May 2024. The decision centred on whether to divest Supreme or invest in realigning its operations to capitalize on its strong brand identity, especially in growth markets like Asia.
In September 2023, Sarah Bell, the president and chief executive officer of Artisan Alley Donuts (Artisan Alley), was facing various operational challenges as she navigated the complexities of scaling up her business. Artisan Alley is an artisanal donut bakery in Calgary, Alberta, Canada. Bell’s decision to increase donut production by 15 per cent (from 624 to 720 daily products) inadvertently led to late deliveries and inadequate inventory by opening time for the company’s two stores. With the limited shelf life of donuts (just one day), unsold items are discarded. This product waste increases the cost of goods sold. Recognizing the need to optimize production for profitability, Bell had several levers at her disposal. She could decouple processes, adjust the task schedule of bakers, incorporate work-in-process buffer inventory, or consider reducing batch sizes. Artisan Alley is also consistently selling out of donuts before closing time, so Bell is contemplating increasing production even further. She is wondering if a newsvendor model analysis might offer insights and solutions to address this challenge. Bell has only one day to determine the ideal production volume for next week.
<p style="color: white; background-color: rgb(3, 70, 56); font-size: 16px; display: inline-block; border: 0px solid rgb(197, 183, 131); padding: 4px 4px;"><a href="" style="color: inherit; text-decoration: inherit;"> DIGITAL LEARNING EXPERIENCE COMING SOON</a></p><br><br>Kurt Preston, Vice President of Global Sourcing & Product Operations at Sonos Inc. (Sonos), had been considering a Joint Development Model for future Sonos products. In 2022, Sonos began to expand their product offering to target value-conscious consumers and grow market share with more modest price points. Historically, Sonos designed every aspect of their products in house and used Contract Manufacturers (CM) for production. A Joint Development Model (JDM) approach offered an opportunity to partner with the supplier to potentially decrease the product development time and cost. However, JDM meant giving up control of several aspects of the product design and this had many at Sonos very worried.