Assignment 2

1. What are some of the reasons a company would separate its online operations into a new company?
The reasons why a company would separate its online operations into a new company would be that the predictable e-business volume will be large, a new business model has to be developed if there are constraints from the current one, there is no reliance on the legacy system or current operations, and the online company is given freedom to attract new talent, set their own prices, raise funding and make new alliances. Separating the online operations would reduce internal conflicts; build a new and more efficient system and also have the ability to create new brands more proficiently.

To avoid store cannibalism, to settle a new subsidiary and look for new branding opportunities: 4/5

2. Explain why supply chain management should be aligned with corporate strategy. Justify your answer with an example.
Supply chain management should be aligned with corporate strategy because supply chain is a process that runs through almost every division and operation in an organization. When supply chain is aligned with corporate strategy it produces optimal operational performance.
Organizations have to manage inventory, get supplies on time for products, and arrange to have that final product reach its final destination in a timely manner. Aligning this with corporate strategy is important, as companies need to keep inventory manageable so they can keep cost down offer competitive prices to customers. Manufacturing companies need to have suppliers provide the materials for products on time so that orders can be filled and shipped on time, having collaboration with the suppliers and their system this can be made possible. With new technology for supply chain, everything is automated, from taking an order to sending confirmation that the order has been