MBA Operations Management - Case Study Guides - 02d: OUTSOURCING OFFSHORE AT DARDEN

Operations Management, 12e (Heizer/Render/Munson)

OUTSOURCING OFFSHORE AT DARDEN

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The 10-minute video that accompanies this case study is available
from Pearson and was filmed specifically for text. Since this case
was written and filmed, Darden spun off in 2015 Red Lobster into
a separate company.
1. There are numerous outsourcing opportunities available to a
restaurant, including food supplies, all other supplies, janitorial,
data processing, benefits, marketing, and bookkeeping. Darden
outsources the seafood and produce part of its supply chain, but
maintains tight quality standards “from farm to fork.”
LO 2.3: Understand the significance of key success factors and
core competencies
AACSB: Analytical thinking
2. When a giant like Darden procures supplies in 35 countries, it
needs to have a large staff “on the ground” to arrange for training,
quality control, contracts, expediting, language/cultural issues,
and so on. With very tight standards, it will not use a supplier
until all its expectations for reliability/quality are met. Once
trained, a supplier need not be managed as closely, freeing Darden
supply chain personnel to seek out the next provider.
LO 2.3: Understand the significance of key success factors and
core competencies
AACSB: Analytical thinking
3. In other industries, perhaps where 48-hour freshness is not
a critical issue, supply chains may differ. Challenges come from
culture, communications, distance, and documents. Companies
like Walmart have used alliances. P&G reorganized along
product lines instead of geography to increase coordination.
Mercedes decided to build some models in the U.S. to get closer
to customers.
LO 2.3: Understand the significance of key success factors and
core competencies
AACSB: Application of knowledge
4. Darden outsources seafood harvesting and preparation offshore because (a) it may not legally own/control the catch in foreign waters; (b) labor intensity of food preparation means it is
cheaper for that work to be done offshore; (c) bulk food purchases
are capital intensive and not part of Darden’s core competence.
Darden has recently spun off its Red Lobster restaurants in part
because of the special challenges and costs connected with this
part of its business.
LO 2.3: Understand the significance of key success factors and
core competencies
AACSB: Reflective thinking

 

 

 

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Operations Management: Sustainability and Supply Chain Management, 12th Edition (Free Ebooks Download)
Jay Heizer, Texas Lutheran University
Barry Render, Graduate School of Business, Rollins College
Chuck Munson, Carson College of Business, Washington State University

Free Online Course Materials

1. Operations Management Ebooks - Free Downloads

2. Slides - 11th Edition - Free Downloads

3. Slides - 12nd Edition - Free Downloads

4. Full List of Videos Case Studies - Link

5. All articles about Operations Management

http://topten.edu.vn/mba-cases/94-mba-operation-management 

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