Page 158 - BA1 Integrated Workbook STUDENT 2018

Subject E3: Strategic Management

11.3 JEN manufactures shoes. It purchases leather from tanneries and then sells the
completed shoes onto shoe retailers and supermarkets, who sell them onto the
end consumer.

JEN’s new CEO has released the following statement regarding JEN’s supply
chain:

‘Tanneries play a key part of our downstream supply chain. It is vital that we
consider their production capacity, as well as whether they are making sufficient
returns. We could also consider the use of EDI with our major corporate
customers, which would likely increase efficiency and reduce costs.’

Which ONE of the following options best describes the new CEO’s
understanding of JEN’s supply chain?

A Excellent – there are no errors in her statement

B Good – there is one error in her statement

C Weak – there are two errors in her statement

D Very weak – there are more than two errors in her statement

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