Page 487 - Fundamentals of Management Myths Debunked (2017)_Flat

486 Part 5 • Controlling
requIred CaPabIlItIes. We know from our earlier discussion
A Question of Ethics of requirements for the successful implementation of value chain
management that value chain partners need numerous capabilities.
Okay—so here’s an “unusual” ethics dilemma for you and it’s Several of these—coordination and collaboration, the ability to con-
a fitting conclusion in the last chapter of the textbook. Why? figure products to satisfy customers and suppliers, and the ability
Because it illustrates that questions of ethics can pop up in to educate internal and external partners—aren’t easy. But they’re
the most ordinary of places. Suppose that you went to a pop- essential to capturing and exploiting the value chain. Many of the
ular shopping area where parking was extremely limited and companies we’ve described throughout this section endured critical,
and oftentimes difficult, self-evaluations of their capabilities and
the store owner had instituted “customers only” parking and processes in order to become more effective and efficient at manag-
you were lucky enough to find an open space. Then suppose ing their value chains.
that once you finished your business at that store—having
spent a fair amount of money—you had other shopping to do
in the same vicinity so you left your car in that same “custom- Your people must be committed
ers only” parking space. You believed that what you did was to VCM.
okay since you “paid” for that spot with your purchase. But
your significant other disagreed saying that since you had fin- PeoPle. The final obstacles to successful value chain manage-
ished your business at that store, your car should be moved. 39 ment can be an organization’s people. Without their unwavering
commitment to do whatever it takes, value chain management
If your professor has assigned this, go to the Assignments
section of mymanagementlab.com to complete these won’t be successful. If employees refuse to be flexible in their
work—how and with whom they work—collaboration and coopera-
discussion questions.
tion throughout the value chain will be hard to achieve. In addition,
Talk About It 3: What is the “question of ethics” value chain management takes an incredible amount of time and
here? Why is it a “question of ethics”? energy on the part of an organization’s employees. Managers must
motivate those high levels of effort from employees, which isn’t an
Talk About It 4: Who are the other stakeholders easy thing to do.
in this situation and how might this one seemingly simple
decision affect them?

try It!
If your professor has assigned this, go to the Assignments section of mymanagementlab.com to
complete the Simulation: Operations Management.

What Contemporary Issues Do Managers Face

in Managing Operations?

Redesigned milk jugs that have been adopted by Walmart and Costco are cheaper to
15-4 Discuss ship, better for the environment, cost less, and keep the milk fresher. Experts say this
contemporary type of redesign is “an example of the changes likely to play out in the American
issues in economy over the next two decades. In an era of soaring global demand and higher costs for
energy and materials, virtually every aspect of the economy needs to be re-examined and
managing many products must be redesigned for greater efficiency.” 40
operations. If you somehow thought that managing operations didn’t really matter in today’s online
24/7 global economy, think again. It does matter . . . a lot. We’re going to look at three con-
temporary issues that managers face in managing operations.

1 What Role Does Technology Play in Operations Management?
As we know from our previous discussion of value chain management, today’s competitive
marketplace has put tremendous pressure on organizations to deliver products and services
that customers value in a timely manner. Smart companies are looking at ways to harness