MGMT 104 Chapter Notes - Chapter 23: Stockout, Switching Barriers, Meritocracy
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Soda bottling ventures (sbv) plant is a bottling plant in nc. Emmett taylor is a young general manager at the bottling plant who quickly rose through the ranks due to this great work ethic. A (cid:272)o(cid:373)i(cid:374)g sto(cid:396)(cid:373) (cid:449)as (cid:272)ausi(cid:374)g ta(cid:455)lo(cid:396)"s 40 t(cid:396)u(cid:272)ks o(cid:374) the (cid:396)oad to (cid:271)e dela(cid:455)ed. The storm would cause people to rush to the stores to stock-up, (especially wate(cid:396)fi(cid:374)a(cid:895), (cid:271)ut ta(cid:455)lo(cid:396)"s sto(cid:396)es (cid:449)ould (cid:271)e out of stock because the trucks wouldn"t get there in time. Waterfina was selling at 3 sds above normal, and the sbv cannot have stockouts, because they translate to: Low switching cost- (cid:272)usto(cid:373)e(cid:396)s (cid:449)ill shop at (cid:272)o(cid:373)petito(cid:396)"s sto(cid:396)es to (cid:271)u(cid:455) wate(cid:396)fi(cid:374)a. Problem: 5 trucks are stuck in traffic, 1 was in an accident, 3 are stuck by a tree in a road; almost everyone went home. Taylor loves solving problems- moved the tree out of the road. 3 of their main suppliers are suspending travel to nc until the storm subsides.
