1. What actions can Peanutty’s managers take to ensure the supply of raw materials for its

operations, while reducing the risk of stock-outs or high production costs?

There are a few changes Peanutty's managers can make to ensure raw materials for its operations,

while reducing the risk of stock outs or high production costs. Peanutty can utilize the Just In Time

inventory strategy to cut costs by reducing the amount of goods and materials a firm holds in stock.

Also, Peanutty should build trust with its supplier management in order to not only sharing

information, but to devote time and resources to understand themselves which encourage the

creation of goodwill in the long run Peanutty should also have mutual benefits and needs with the

supplier. If Peanutty addressed the issue of partnership with the supplier they may be able to come

to an agreement where both parties are satisfied. Lastly, Peanutty managers should stress more on

their interpersonal relationships with their suppliers since communication among people is the

vehicle that moves things in any relationship or partnership.

2. What activities could be developed by Peanutty to reduce or manage the power of its

suppliers and customers in order to minimize risks and maximize profitability?

Peanutty needs to venture out and expand themselves on the market. More innovative uses of

peanuts could assist in gaining more customers to them. Reaching out to the suppliers and the

customers would gain more market for them. Small businesses and customers would likely prove to

be more beneficial, as opposed to big box food manufacturers whom are likely interested in the

money. Partnering with smaller suppliers could allow more equally allotted bargaining power in an

effort towards a collaborative venture. Also, this would allow Peanutty to cut costs, and allow

Peanutty to maximize profitability on their products.

3. In your opinion, what would be the best organizational structure to make the company more

agile and competitive?

A matrix organizational structure would best benefit this company, by making it more competitive

and mixing management and staff together in specific project groups. This would allow for fast twoway communication between the executive levels of the company and line employees. As of now,

the company is having trouble meeting the demands of customers because of redirection of

production by Mr. Carmelo. If the employees were able to operate within a matrix structure, they

could work together with Mr. Carmelo to gain off of the business.

4. Given the four areas of the company (R&D, Production, Logistics and Management), choose

some supply chain processes and suggest appropriate performance metrics.

Customer service management is very important. Making sure that the product is still selling to the

customers; by having an understanding of what they like and what they demand is critical to the

success of any business. Especially with the top level managers taking very little input from

employees, it is more important to maintain a relationship with customers. It would be a good idea

to send out customer surveys and offer incentives, to measure performance.

Answer rating: 100% (QA)

Peanutty has multiple actions to take to ensure a consistent supply of raw materials for operations first the concept of just in time is applicable Global organizations are shifting towards it as it l... View the full answer