Topic > Supply Dynamics: Problems Identified

Supply Dynamics (SD) was started as a consultancy firm aided by metals distributor AIM, but AIM's business faltered in 2003 due to an outbreak of severe acute respiratory syndrome in Asia and the September 11, 2001 attacks in the United States SD broke away from AIM and began offering services such as managing the raw materials that go into finished parts to improve the performance of manufacturers who resell another company's product. Hiring SD, which has a cutting-edge SaaS solution designed to leverage volume for quantity discounts, saves these companies money and reduces risk. In 2003, TS (Trevor Stansbury) sold SD to a wealthy individual, which led to SD owning this sophisticated software. SD was later acquired by O'Neal Steel in 2006. TS is now thinking about growth strategies such as expanding into a new market and introducing new offerings. With BOM characterization efforts, OASIS licensing costs, effective employee retention strategies in place, and opportunities to improve sales and software through the O'Neal Steel acquisition, SD is perfectly positioned to replicate your business model and monetize the data collected over the years. years. Say no to plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get an Original EssayIdentified IssuesAfter O'Neal Steel acquired Supply Dynamics, Trevor Stansbury was concerned about diversification. While they initially began aggregating sheet and plate materials, opportunities to do the same process for plastics and other materials showed signs of future success. The problem here is that diversifying into the aggregation of plastics and fasteners could mean that resources would be tied up in so many tasks that they wouldn't be able to do any of them well. This could further lead to underutilization of resources where none of the sectors generate the level of return that Trevor had initially hoped to achieve. This is a serious concern for Supply Dynamics management as they have managed to generate significant profits across many streams, including consulting fees. There is the possibility of competition that Supply Dynamics could face from "home-grown" imitators; for example, they might look at Supply Dynamics as a template and copy it at a more general level, but use it to modify it to their specifications. Unless steps are taken to combat competitors who copy their design, Supply Dynamics will lose market share to consumers who choose to purchase competitors' products. Trevor is concerned that due to this recent acquisition, his current business model may have changed. Although the company was in the maturity stage before the acquisition, Supply Dynamics products may be in a growth stage as it operates as a wholly owned subsidiary. With a change in location, all the characteristics involved in the business model such as key partners, key activities, value propositions, customer segments, customer relationships, channels, key resources, cost structure, revenue streams can be changed. He needs to fully understand the implications and act accordingly. Stansbury is also concerned about whether O'Neal's affiliates will develop into synergies. During a merger, there could be lost jobs, culture clashes (“us” versus “them”), and an even lower efficiency rate. It will have to implement strategic decisions to counter all these possible problems mentioned above. Therefore, they must be.