MGT 303 Final Exam

Peanutty Food and Co.

1. What actions can Peanutty’s managers take to ensure the supply of raw materials for its operations, while reducing the risk of stockouts or high production costs?

They can operate on a just in time method, when they get a constant understanding of demand. This way they can cut production costs, by only making what they need. They can also predict when they need more inventory to make sure that they never run out of stock for their customers to purchase.

2.What activities could be developed by Peanutty to reduce or manage the power od its suppliers and customers to minimize risks and maximize profitability?

Peanutty needs to venture out and expand themselves on the market. Coming up with more innovative and creative uses for peanuts and products for them to be used in could assist the company in gaining more customers. Gaining more customers is very important for this company. The smaller the customer base is, the less “wiggle room” the company has. Peanutty reaching out to other suppliers and companies could help the company to expand its customer base. Small businesses and customers would likely prove to be more beneficial, as opposed to big box food manufacturers whom are likely interested in the money. Smaller companies are often willing to allow more equally allotted bargaining power, in an effort to help each other on the collaborative venture. Partnering with smaller suppliers could cut costs, and allow Peanutty to maximize profitability on their products.

3. In your opinion, what would be the best organizational structure to make the company more agile and competitive?

It is my opinion that a matrix organizational structure would best benefit this company, by making it more competitive. A matrix structure would mix management and staff together in specific project groups. This would allow for