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LOSING CASE STUDY ONE (p. 56)

COCA-COLA IS EVERYTHING: SCM, CRM, COLLABORATION, YOU NAME IT

In this case study, your students will explore how Coca-Cola uses technology to supports its business operations and initiatives. As with most large organizations, Coca-Cola uses all types of types, including all the ones presented in this chapter. QUESTIONS

1.Within this case study, describe various IT-enabled initiatives and categorize them

as either above-the-line, below-the-line, or some combination of the two.

DISCUSSION

∙Common Innovation Framework – a combination of the two

∙Software services to bottlers – below-the-line

∙My Coke Rewards – above-the-line

2.Why is standardization so important in supply chain management? Coke is

developing its own set of software services for bottlers to use. Do you think

Coke charges the bottlers for these software services? Why or why not?

DISCUSSION

∙SCM crosses many organizations in a typical supply chain.

∙All organizations must “speak the same language” through standardizat ion;

otherwise their IT systems cannot be integrated.

∙Coke probably does charge for the software services through its bottling/franchising contract.

3.Describe two different forms of e-collaboration in this case study. For each,

articulate the benefits to Coke.

DISCUSSION

∙Common Innovation Framework for internal employees –helps employees find knowledge that already exists within the organization; processes, best practices, and the like don‟t have to be recreated.

∙My Coke Rewards for customers – a wealth of engagement activities (American Idol, race car driving, iTunes, etc) that keep customers coming back to the web site and also keep customers loyal to Coke.

4.How is My Coke Rewards an example of a switching cost? How can a switching

cost not have a monetary penalty associated with it?

DISCUSSION

∙It is a switching cost because it is something that endears customers to Coke, and thus makes it difficult for them (almost on an emotional level) to switch to another soft drink.

∙Anything that makes people reluctant to switch can be a switching cost.

5.Referring back to the discussion on page 49 and Figure 2.7, what do you believe

to be Coke‟s overall organizational structure? Top-down silo, matrix, or fully integrated? Why? How does Coke‟s use of technology support your decision?

DISCUSSION

∙Matrix most likely, although it‟s impossible to tell completely based on the case.

∙But, because Coke has things like the Innovation Framework that connect people throughout the organization, it is definitely not top-down silo.

6.What sort of business intelligence could Coke gather from its My Coke Rewards

Web site. How could it use this information for customer relationship

management activities?

DISCUSSION

∙A lot of business intelligence, some of examples are:

∙Things (race car driving, etc) liked by people according to drink category –diet, caffeine free, etc.

∙Correlation between magazine preferences and music preferences.

∙Your students can combine any two things mentioned in that part of the case study and come up with some reasonable form of business intelligence.

∙Businesses can produce the corresponding drink according to customer s‟ love in order to attract more customers.At the same time to provide customers favorite music or magazine to let them become loyal customers.

CLOSING CASE STUDY ONE (p. 87)

DEMAND-SIGNAL MANAGEMENT: A NEW FORM OF BUSINESS INTELLIGENCE

In this first case study, your students will explore demand-signal management, a new process that can help in the generation and analysis of business intelligence.

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