This activity is two parts, each part consists of a specific case study. Please consider each part separately and answer the required questions.
The answers to each part should be a minimum of 750 words including tables but in addition to diagrams.
Part 1: The Tao of Timbuk2
Study the case details at the end of chapter 2, visit and note the details on the company’s website, then attempt the following questions:
- Consider the two categories of products that Timbuk2 makes and sells. For the custom messenger bag, what are the key competitive dimensions that are driving sales? Is its competitive priorities differ- ent for the new laptop bags sourced in China?
- Compare the assembly line in China to that in San Francisco along the following dimensions: (1) volume or rate of production, (2) required skill of the workers, (3) level of automation, and (4) amount of raw materials and finished goods inventory.
- Draw two diagrams, one depicting the sup- ply chain for those products sourced in China and the other depicting the bags produced in San Francisco. Show all the major steps, including raw material, manufacturing, finished goods, distribution inventory, and transportation. Other than manufacturing cost, what other costs should Timbuk2 consider when making the sourcing decision?
Part 2: Ikea: Design and Pricing
Study the case details at the end of chapter 3, visit and note the details on the company’s website, then attempt the following questions:
- What are IKEA’s competitive priorities?
- Describe IKEA’s process for developing a new product.
- What are additional features of the IKEA concept (beyond its design process) that contribute to creating exceptional value for the customer?
- What would be important criteria for selecting a site for an IKEA store?