Question

As jessica Grant, what recommendations would you make tot eh company's vice president? Philip Duchene and...

As jessica Grant, what recommendations would you make tot eh company's vice president? Philip Duchene and Why?

Homework Answers

Answer #1

I would recommend to Mr. Duchene that there are enough pros compared to cons of Apple’s supply chain to continue with Apple as a key holding in BXE’s fund. The biggest issue in the supply chain is that with the real-time operations they leave very little to no room at all for any error. If there is defective product, shortage of raw material or any other hiccup in the manufacturing process the company could be in big trouble. The upside is they truly prepare for the worst by buying suppliers’ production capacity in advance and negotiating deals to ensure they are the only buyer purchasing the product. With the amount of spending money they have it is not an issue for last minute million dollar freight purchases or making last minute changes to the design of a product just weeks before it is released. Apple’s supply chain has been ranked number one for a reason and will continue to bring success to the fund.

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