The Harvard Business School case study article of December 4, 2006: Pitney Bowe Inc. discusses quite well how a company within the postage stamp industry manufacturing postage stamp meters also at the same time simultaneously provides management and consulting services for its customers/clients.
An illustrative and intellectual argument can be debated with a reputably established brand within the fast-food industry which is well-known and identified with its customers.
The ever-great McDonald's chain of restaurants has taken their condiments as a matter on their own terms. As recently to date, everything from soft drink cups to ketchup is either exclusively made by McDonald's or for MacDonald's. In the earlier days of the restaurant's history all its condiments were either partnered or contracted through Heinz Corporation or Hunt's Corporation. In latter years and until recently all condiment packaging for McDonald's states that it is made for or by McDonald's at their headquarters in Bloomington, Illinois. Thus, if an individual were to ever take notice the ketchup packaging then it would mention McDonald's "Fancy Ketchup" and no such signs of either brand of Hunt's or Heinz as ketchup distributors is visible.
This argument along with Pitney Bowes' similar so-called "in-house" management practice of their supply, unfortunately, takes away the competitive advantage of the individual/independent service providers like the United States Postal Service and Mailboxes Etc. who are also in business for the management of postal services for their clients. With the case of McDonald's, Hunt's or Heinz ketchup distributors are snatched away from competing for their piece of the pie from McDonald's and it international market for substantial revenue and profits.
On the other hand, both McDonald's and Pitney Bowes benefit from economies of scale efficiencies due to cost-reductions because of in-house production which would enable them to use there own materials, labor, and supplies at a fraction or even half of the cost, whereas, the direct distributors would maybe charge double the amount or even triple (with regards to hidden costs) to produce the same/similar ketchup recipe or mail services that either company can produce in the same way or maybe better.
In closing, let's not be surprised if either Pitney Bowes or McDonald's (perhaps a ketchup making factory) outsource their management services overseas internationally to places like China or India for more economic cost benefits in the long-run. This is the sign of the times.
Friday, February 15, 2008
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1 comment:
I see that you are definitely trying to master critical thinking in your writing. I see the signs of bringing in multiple perspectives. Your writing is choppy though: it jumps instead of making smooth transitions between sections in your discussion. Going forward, you'll want to try to slow down a bit and try to put yourself in the readers' shoes: Can they follow your thoughts? Its good to write something one day and then put it aside until the next day and read it again.
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