Week 8 Forums and Responses

ENTR315 FORUM: For this week’s forum, explain the follow-up expectations of the investor you would most likely want to work with. Also, assess factors that affect the length of the relationship with the investor. Can you meet those factors? Explain.

RESPONSE #1: Hello Class,
One of the hardest parts of entrepreneurship is managing an investor’s expectations for you as the business owner and your business itself. Through clear, honest, and frequent communication with investors, you as the entrepreneur can ensure the continued their support of your vision. 
When thinking through follow-up expectations as a business owner I must have a clear understanding if they are expecting quarterly reports and earnings, yearly or simply are a hands-off investor and trust the business owner run/operate alone and provide what the original agreement stated. 
For McCarthy Cabins we are essentially looking for an investor who truly sees the potential in our business regardless of how they want reporting done. As a business owner, I would prefer yearly reports on the business or simply a hands-off investor.
Factors that affect length, I believe that the original agreement between owner and investor would put in detail when and how the investor would be paid back and at what return on the investment they should expect. If profits are lower or higher than the business expected, this could be one issue that targets the length of the relationship. Other factors could include, the market or world issues. If my cabin business were operating in this moment you could only imagine how this pandemic would negatively affect it. McCarthy Cabins would struggle to stay afloat or make money, the economy, the stock market and other world issues are additional factors that also play a role.
Hope to hear everyone’s thoughts!

Response #2: If I were to work with an investor they would expect to know first off when will they get paid, how much money would be needed for the company for a year to about 18 months so that the investor knows that the company will stay in business a while and how much money that I will be truly be putting in the company for start-up. If I were to use an investor I know it would be 24 to 36 months before I would be able to pay enough money to the investor where they would be happy that they are getting a return on their investment. At 24 to 36 months the food truck would be making more than enough profits for me to give the investors more money so that they know their money is coming back

RTMG201 FORUM: 
After reading this week’s lesson and reading content, answer the following in your own words:
 
1. What are some of the primary risks in SCM that Muller discusses? Explain.
 
2. Choose a company who is currently in the news or on the trend boards that have a successful SCM. Why do you think they are successful? Explain yourself completely.

RESPONSE #1: According to Muller, there are ten primary risks in Supply Chain Management. They are globalization and supply chain complexity, conflicting interests, system fluctuations over time, evolving relationships, product complexity, inadequacy of insurance, suppliers, the bullwhip effect, disruption in communications, and inadequate software (Muller, 2011, 216). Because of how many organizations are involved within a supply chain from beginning to end, the lack of control due to globalization and supply chain complexity is a major risk (Muller, 2011, pg. 217). Since there are many organizations involved, many different and often conflicting objectives arise. For example, conflicting interest become a major risk because a large end user may want to buy a pack size of a product that the distributor has to by a minimum more than the end user requested. The distributor will try to keep the end user as a customer but will be left with dead stock to appease the request. As we can see with human disasters like with COVID-19, system fluctuations over time can become a major risk because safety stock needs to be carried in order to combat demand even though sophisticated forecasting techniques may be applied (Muller, 2011, pg. 219). Evolving relations can be a primary risk in supply chain management as the process grows, relationships may change causing difficulty to establish closer supplier relationships leading to ore predictability (Muller, 2011, pg. 219). With complex products comes increased skills sets and mechanisms needed to create it while the complexity costs more to create which poses as a risk (Muller, 2011, pg. 220). Inadequacy of insurance is a risk because even adequate dollar amounts of insurance coverage cannot protect from many of the significant negative impacts of supply chain, such as loss of reputation (Muller, 2011, pg. 220). Suppliers can be a primary risks because as companies see benefits from single sourcing, loss a flexibility arises and with multisourcing suppliers can dramatically impact others. The bullwhip effect is a primary risk because as small fluctuations occur in demand at a retail level, it can cause large fluctuations in demand at the distributor and manufacturer level (Muller, 2011, pg. 222). The large swings can be caused by lack of communication or even overreaction to backlogs. With any process, communication is essential and a disruption of communication in supply chain management is a major risk. Lastly, inadequate software leaves companies from preventing, mitigating, and reacting to other risks (Muller, 2011, pg. 225). 
After researching, McDonalds’s has had inconsistency in their sales from previous years but their supply chain has been excellent. Aside from being recognized in Gartner’s Supply Chain Top 25 as number two in 2016, their supply chain was able to minimal suppliers as a risk because the original founder prided himself on developing close supplier relationships that shared the same vision (Ovenden, 2017). McDonald’s constantly tracks everything, sharing all data with partners and franchise owners, including daily point-of-sale data for each item, restaurant stock levels, and inventories, among other metrics (Ovenden, 2017). Personally I see their success as they have grown worldwide. I have been to McDonald’s in every state I have visited on road trips, France, and even Spain. 

RESPONSE #2: What are some of the primary risks in SCM that Muller discusses? Explain.
Supply chain industry continuously faces uncertainties and unpredictable hindrances that prevent the normal flow of products between the manufactures and consumers (Muller, 2011). In the event of occurrence, such disruption yield negative results to the performance and operation of an organization. Unforeseen circumstances prevent normal production activities which lead to late deliveries, quality concerns, low quantity or price changes all which reflect negatively on customer’s satisfaction. This in turn contributes to poor performance of an organization because of poor reputation and inability to satisfy customers. 
There are many risks in the supply chain industry. The primary risks that face the industry includes: financial factors such as changes in exchange rates, unexpected overruns or supplier going bankruptcy (Muller, 2011). Additionally, legal technicalities of different countries pose a challenge to the supply chain activities. Other primary risks are natural calamities, unfavorable social and political environments, and poor inventory management. Poor management at the production facility including maintenance of machines and qualified personnel in the facility threatens the supply chain operations. 
 2. Choose a company who is currently in the news or on the trend boards that have a successful SCM. Why do you think they are successful? Explain yourself completely.
Companies that are operating successfully in their supply chain process have adopted risk management strategies (Muller, 2011). Such companies identify, analyze and control possible threats that are likely to affect the normal functioning of an organization. They predict potential financial risks, environmental factors, legal risks, human related threats, and act accordingly and in time. Alibaba is a popular online platform which encompasses many supply chain operations. The company is a success because of their full knowledge of supply risks. The company has adopted the best supply chain technological tools that help the company to maneuver through the potential supply chain risks. Alibaba engages in demand planning, globalization, outsourcing and collaboration with other stakeholders which have resulted to the company becoming a success