I think it is very interesting how H&M is leveraging IT systems to help manage the complexity in their supply chain. As Luthan mentions, not having their own factories makes the relationships with suppliers crucial, and this can be very complicated when suppliers are very fragmented and geographically disperse. It is great that the company has access to its suppliers’ stocks in real time, as this helps reduce uncertainties in the decision making process.
Very interesting! Being a big Chipotle fan, I didn’t know much about its operating model. I’m not surprised that they don’t have any franchises, as quality seems to be very consistent among different stores.
Chipotle has been very present in the news in the last month, with the e coli outbreak and the closing of more than 40 stores in Washington State and Oregon. Since then, the stock has declined steadily, and the recent health scares in Boston that you mention in the end of your post will continue to affect the company’s reputation and value. In any business involving food, quality is the most important factor, so it would be interesting to understand further what is causing these outbreaks and how to prevent them in the future. These events clearly endanger the sustainability of the business.
Yes, very interesting! This made me think about the current situation in Argentina where the oil and gas industry is heavily subsidized. The recent elections favored the opposition’s candidate Macri, and people are expectant as many changes are bound to occur in the next few months. Will the subsidized gas prices and bonuses for petroleum production continue in this new government? How will this affect the competitiveness of Argentinean oil and gas companies?