Case Question - 2051 Words

Warren E. Buffett, 2005 Case Questions: 1. What is the possible meaning of the changes in stock price for Berkshire Hathaway and Scottish Power plc on the day of the acquisition announcement? Specifically, what does the $2.17-billion gain in Berkshire’s market value of equity imply about the intrinsic value of PacifiCorp? Based on the multiples for comparable regulated utilities, what is the range of possible values for PacifiCorp? What questions might you have about this range? Assess the bid for PacifiCorp. How does it compare with the firm’s intrinsic value? As an alternative, the instructor could suggest that students perform a simple discounted cash flow (DCF) analysis. How well has Berkshire Hathaway performed? How well has it†¦show more content†¦3. What is the weighted average cost of capital (WACC) and why is it important to estimate it? Is the cost of capital something that managers set? Who sets it? 4. Calculate the WACCs for Coca-Cola and PepsiCo. A ssume a tax rate of 35 percent. Be prepared to explain your assumptions for the following components: a. b. c. d. e. f. 5. 6. 7. Kd Ke Rf Beta Market risk premium Weights of debt and equity capital Interpret the results of your WACC calculations. What observations can you make? Calculate EVA for 2001 to 2003 using the forecasts given in the case and the WACCs you have estimated. Interpret the results of your EVA calculation. If you had to choose between Coca-Cola Co. and PepsiCo, which one would you choose? Why? The Boeing 7E7 Case Questions: 1. What is an appropriate required rate of return against which to evaluate the prospective IRRs from the Boeing 7E7? a. Please use the capital asset pricing model to estimate the cost of equity. At the date of the case, the 74year equity market risk premium (EMRP) was estimated to be ___. Which beta and risk-free rate did you use? Why? When you used the capital asset pricing model, which risk-premium and risk-free rate did you use? Why? Which capital-structure weights did you use? Why? b. c. 2. Judged against your WACC, how attractive is the Boeing 7E7 project? a. b. Under what circumstances is the project economically attractive? What does sensitivity analysis (your own and/or that shown inShow MoreRelatedCase Study Questions1940 Words   |  8 Pagesfor AGI? Why or why not? b. Review the projections by Liedtke. Are they appropriate? How would you recommend modifying them? c. Estimate the value of Mercury using a discounted cash flow approach and Liedtke’s base case projections. c. Do you regard the value you obtained as conservative or aggressive? Why? e. How would you analyze possible synergies or other sources of value not reflected in Liedtke’s base assumption? a. Is Mercury an appropriate targetRead MoreQuestion case study Essay681 Words   |  3 Pagesï » ¿ List questions Case Studies Bella Healthcare India 2012, HBS #4441 STRAT MAGT – Internationalization; product development; â€Å"local for local† strategy UD: 12/12/2012 Overview and Objectives: The case traces the path taken by an overseas operation from low cost manufacturing to higher value-added activities such as RD. It asks students to consider the factors driving the evolution and this timing and circumstances that would make it successful. It creates the opportunity toRead MoreCase study discussion questions1663 Words   |  7 Pagesï » ¿Case Study Discussion Questions for Case Studies in Entrepreneurial Management and Finance Professor Edward H. Chow Spring 2013 1. (2/20) Introduction and get acquainted: Entrepreneurship and finance Lecture and discussion: A perspective on Entrepreneurship, Howard H. Stevenson, 1988 (9-384-131) How is finance related to corporate objectives? Note on the financial perspective: What should entrepreneurs know? William A. Sahlman, Harvard Business Publishing (9-293-045) In your view, whatRead MoreCases Questions1421 Words   |  6 PagesFIN 620, Fall 2006 CASE QUESTIONS DR. KISS Please allow these questions to serve as a guide when you prepare your case write-up in accordance with the syllabus or other instructions. Table of Contents Page Case: Name and Number, Bruner 5e Note Number I. C12- Best Practices—WACC No Questions II. C2- Bill Miller Value Trust 2 III. C5- Financial Detective, 2005 Contained in Case IV. C7- Body Shop Intl* Contained in Case, but see page 3 Read MoreCase Questions1691 Words   |  7 PagesCASE QUESTIONS Cash Flows and Value. Cost of Capital Case 1: Hop-In Food Stores, Inc. 1. Determine the correct price for this particular IPO. Use several methods to do this and compare them. 2. What extra information would you try to acquire in a real life situation? Case 2: Chem-Cal Corporation 1. How do you calculate the WACC for this firm? 2. What is the cost of capital of the debt, preferred stock, and common stock (assume the equity beta is 1.22)? 3. Calculate the WACC. How can a WACC be usedRead MoreCase Question1230 Words   |  5 PagesThis is an outline of the three-step writing process to apply to cases. Answer all questions directly on this form. Then add a page break, and write your message in response to the case on the following page. For the three-step process questions, you may use short phrases and sentences for your answers. Student name? Javier Pita Case number and short name for case? Case number 12. Short name: Email privacy policy. I. Plan A. Analyze the Situation 1. What is your generalRead MoreCase Question2035 Words   |  9 PagesWarren E. Buffett, 2005 Case Questions: 1. What is the possible meaning of the changes in stock price for Berkshire Hathaway and Scottish Power plc on the day of the acquisition announcement? Specifically, what does the $2.17-billion gain in Berkshire’s market value of equity imply about the intrinsic value of PacifiCorp? Based on the multiples for comparable regulated utilities, what is the range of possible values for PacifiCorp? What questions might you have about this range? Assess the bid forRead MoreCase Questions1966 Words   |  8 PagesManagement Strategy Case Questions Case 5: Panera Bread Company 1. What is Panera Bread’s strategy? Which of the four generic competitive strategies discussed in Chapter 3 most closely fit the competitive approach that Panera Bread is taking? What specific kind of competitive advantage is Panera bread trying to achieve? 2. What does a SWOT analysis of Panera Bread reveal about the overall attractiveness of its situation? Does the company have any core competencies or distinctive competenciesRead MoreCase Study Questions1276 Words   |  6 PagesBUSINESS POLICY SPRING TERM 2012 BUS 450 Questions for the Next Several Cases Friday, February 24 Case: Competition among NA Warehouse Clubs (case 4 in text) 1. What is competition like in the North American wholesale club industry? Which of the five competitive forces is strongest and why? Use the information in Figures 3.4, 3.5, 3.6, 3.7, and 3.8 (and the related chapter discussions on pp. 57-70) to do a complete five-forces analysis of competition in the North AmericanRead MoreCase questions Essay1051 Words   |  5 Pagesï » ¿Principles of Corporate Finance Comprehensive Case Questions Tire City, Inc. 1. Evaluate Tire City’s financial health. How well is the company performing? 2. Based on Mr. Martin’s prediction for 1996 sales of $28,206,000, and for 1997 sales of $33,847,000 and relying on the other assumptions provided in the Tire City case, prepare complete pro forma forecasts of TCI’s 1996 and 1997 income statements and year-end balance sheets. As a preliminary assumption, assume any new financing required will

Freedom Of Speech Positive And Negative Impact On The World

Freedom of speech had a link of positive impacts to the world. One positive impact would be the citizens questioning the government about their personal interests and opinion on free speech. This means that before freedom of speech was questioned, many citizens did not have a voice. The government was not concerned with increasing individual’s voices based on personal opinions and beliefs. When citizens began to question the government, the government had not one motive behind not giving individuals the opportunity to speak freely. This arouse more questioning and thoughts amongst citizens and government officials. The United States implemented the first amendment which is applied to all state and local governments. No one is restricted or†¦show more content†¦It gives leverage, support and clarity to certain circumstances. Negative Impact of Freedom of Speech Freedom of speech can be looked as negative as well. The root of the negativity is that many citizens question of the government is responsible for diverse and chaotic environments in society today? The government refrains from helping individuals exercise their freedom of speech by stepping aside. This means that the government does not use their power pedestals to help spread the word if it is not beneficial to the government. For example, during slavery times in the early 1600 s, the slave masters did not want slaves to have a voice and to be silent always. They did not want slaves to be as smart as masters, so they can continue to be taken advantage of. Another negative impact of freedom of speech is that many emotions and feelings aren t protected by law enforcement or the governments’ opinions and decisions. There are many risks and that comes with expressing opinions to the public t hat has many different views. There is a lot of hypocritical tension among ethnicity and religions. There are Muslims that are unable to dress the way they would like and then there are other religions unable to do what they would like because of freedom of speech and expression. Internet freedom of speech has the ability to be negative inShow MoreRelatedNegative Effects Of Freedom Of Speech945 Words   |  4 PagesFreedom of speech has been expressed throughout the American culture since the Bill of Rights in 1789. Every since the First Amendment was set in place, Americans have been given the privledge of being heard without punishment from the government, however, freedom of speech can unfortuneately be abused and used to hurt people rather than supporting fellow Americans. Since Americans are allowed to voice their opinions, hate along with love is spoken. The First Amendment set a negative of power forRead MoreAnalysis Of Freedom From Slavery By Frederick Douglass715 Words   |  3 Pagesjoy and gratitude of his freedom from slavery, but he goes on to write of the challenges that freedom brought him as well. Upon his freedom from slavery, Douglass was joyous—he had removed himself from the dehumanizing environment that slavery had created for him. However, Douglass quickly realized that freedom and the â€Å"real world† included challenges that he had yet to expect. Douglass’s linguistic style contributes to his expression of his complex feelings towards freedom from slavery. DouglassRead MorePersuasive Speech On Freedom Of Speech1345 Words   |  6 Pagesamerican citizens many very basic freedoms to their speech in whichever way they want to express it. The freedom of religion, speech, and assembly are covered in the first amendment. People in america right now take the freedom of speech as a privilege. Free speech is one of the most valuable, treasurable rights as a individual citizen in the united states of america. These rights have been exercised throughout history, and have produced extremely positive and negative things in a lot of cases; howeverRead MorePositive And Negative Effects Of Censorship In Society798 Words   |  4 Pagessecurity. Censorship is an action that has been performed for many years on several subjects of the world, and it is still happening today. Although censorship is an action occurred on many subjects, music is one of the biggest censorship problems in today’s world. Music can have both positive and n egative effects on a person in society. Either way, music shapes everyday lives of people around the world. Censorship of music is crucial in today’s society for protecting moral values, little children,Read MoreNegative Effects Of Federalism And Free Speech1838 Words   |  8 PagesIntroduction AND Thesis Statement On this world today free speech has been a standout amongst the most battled after rights in the United Conditions of America. The right to speak freely was received on December 15, 1791. The right to speak freely is secured by the main correction in the Constitution of United States, which is the privilege to explain one’s suppositions and thoughts without dread of government countering or control, or societal endorse. Free discourse is imperative in the publicRead MorePublic Participation and Internet Regulation1432 Words   |  6 Pagesthen? I think not; to my mind, there are two different kinds of regulation – â€Å"positive† and â€Å"negative† regulation, implemented with the purpose of promoting and restricting participation respectively. Whether these regulations indeed do promote or restrict effective public participation (which is to be determined by the impact of public participation on business, government and society) still remain to be seen. Positive internet regulation commonly come in the form of online public participationRead MoreTerrorism And The Social Media1719 Words   |  7 Pages Terrorism and the use of social media to further its objective is a major concern affecting the world today. With the growing threat of terrorism, studying its operational techniques help to determine how and why terror groups are succeeding. Understanding the impact that terror groups have on marginalized populations through propaganda and a manipulation of facts will help in developing a greater understanding of terror group’s ability to mount successful campaigns globally. Given the threat thatRead MoreDeconstruction Of Online Realities : Why They Censored And Western Philosophy Of Ethics1330 Words   |  6 PagesName: Student Number: Course Name: Professor Name: Date: Deconstruction of Online Realities: Why They Censored and Western Philosophy of Ethics in Regards to Freedom of Expression This essay will thoroughly discuss the censorship and fundamental rights to Canadian and American Freedom of Speech. Ethics is philosophy. The Greek philosopher Pluto whose discussion was of image and reality and the way his standpoint was related into triggering the long-running dispute between those who championRead MoreEssay on Africa vs European Imperialism841 Words   |  4 Pagesthe world, each country claiming bits as its own. Due to its large amounts of resources, Africa was one of the main areas European nations invaded in the cause if imperialism. In Africa, there were positive and negative effects towards the Africans and the invaders. Some positive effects on Africans were that they were provided with security by their rulers and new technology was introduced to them. Some of the negative effects were that the Africans lost their natural rights such as freedom, theRead MoreNazi Germany Positive And Negative Effects On The World War I1731 Words   |  7 PagesLife in Nazi Germany had many positive and negative effects on the people that were living there between 1933-1939. The treaty of Versailles was when Germany was in great despair. The Germans had to pay back repatriations for losing the war, they lost territory, accepted the blame for causing World War I and there was also the near elimination of the Germany army. This all lead Germany into suffering badly through the Great Depression. The Nazi party and their leader Adolf Hitler brought the Totalitarian

Cargills Quality free essay sample

It is a public listed subsidiary company under Cargills Quality foods which is fully owned subsidiary of Cargills PLC since 2010. Kotmale is a leading brand in the dairy sector in Sri Lanka. Under the â€Å"Kotmale† brand milk packets, chees, curd, yogurt and milk powder are produced. Kotmale Holdings PLC is named as Cargills Quality Dairies (Pvt) Ltd since 2010. In this report, Cargills Food City Retail Supply Chain is discussed by considering the product brand Kotmale Milk Packets. ? Retail Supply chain Above figure shows the retail supply chain of Cargills Food City regarding product â€Å"Kotmale UHT milk packets†. Stakeholders of this retail supply chain Milk Farmers who live in Upper country Sri Lanka Flavors suppliers Packaging supplier – Tetra Pak, Colombo Cargills Quality Dairies(Pvt)Ltd Cargills warehouse Cargills Food City Marketing and distribution operator – Millers Customers Final Consumer Milk Farmers When consider about this retail supply chain, milk farmers are the 2ndtier supplier. Mostly Cargills buy fresh milks from upper country milk farmers. This retail supply chain has about 15000 small scale milk farmers. For the better link with these milk farmers, Cargills has introduced HNB farmer insurance schemes free of charge. Cargills directly connect with these suppliers without having intermediaries. It is an advantage of this retail supply chain. Tetra Pak Another 1sttier supplier is Tetra Pak branch which is situated in Colombo. Tetra Pak is a multinational food packaging company. Cargills Quality Dairies The second tier supplier of the retail supply chain is Cargills Quality Dairies (Pvt) Ltd. It is the manufacturing and processing plant of Kotmale UHT milk packets. In this report we consider about manufacturing plant which is situated in upper Kotmale. Cargills Warehouse Cargills warehouse is the distribution center. It keeps the stock of milk packets and distributes one delivery per one week per each retail outlets. This is the largest warehouse in Sri Lanka. It handles over 50000 items. Cargills Food City The retailer of this retail supply chain is Cargills Food City. It is the most valuable retail brand in Sri Lanka. The largest retail chain consist the Cargills food cities all over the country. It has the motto â€Å"On your way home†. Mostly Cargills Food City focuses everyday busy customers. Cargills food city outlets have the mass customization strategy. There are around 232 outlets which a spreader in 23 districts. Millers The distribution and marketing operator of this retail supply chain is Millers. It is also a subsidiary company of Cargills Ceylon. â€Å"Millers† is the national distributor for all the Cargills manufactured and branded products. â€Å"Millers† links the raw material suppliers with manufacturing plant, manufacturing plant with warehouse and warehouse with Cargills food city outlets. †Millers† makes the Cargills retail supply chain unique by being the one and only distributor. Customer Customer may or may not be the final consumer. He is the person who purchases the product from retailer. In this supply chain, father who buys the Kotmale milk packet will be the customer. Retailer also is a customer of Cargills warehouse. Cargills warehouse is a customer of Cargills Quality Diaries and that manufacturing plant is a supplier of raw material suppliers. Customer buys these milk packets because of the influence of final consumer. Final Consumer Final consumer is the person who uses the products. In this supply chain, a small kid who drinks that milk packet will be the final consumer. ? Key Performance Measures Key Performance Indicators measures the organizational performance which is most critical for the success of the business. They should measure frequently. KPIs significantly affect the behavior of an organization. And also KPIs show the capabilities of managers, staff and the individuals. Let’s consider following framework to analyze the key performance of Cargills Food City retail supply chain. Business Strategy Supply chain strategy Supply chain objectives Operational Metrics Customer service Metrics Financial Metrics Current, Cargills use a competitive strategy of business strategy alignment in supply chain. It has aligned the supply chain strategy to the core business strategy. And Cargills has a strategy of lower retail price for customers. â€Å"On your way home† is the slogan of Cargills food city for everyday customers who live busy lives. Cargills Food city has a unique backward integration with suppliers. Operational metrics In operational metrics Cargills Food city, measures the internal performance of the supply chain and the business. Operational metrics are derived from processes, decisions and actions taken internally to meet or exceed the customer expectations. The goals of Cargills to measure operational metrics are waste reduction, inventory management, evaluate supplier performance, unit cost reduction and time compression. Interface: Cargills Food City Cargills has a Made to Stock order fulfillment strategy regarding Kotmale UHT milk packets. Cargiils food city keep a finished products inventory of Kotmale milk packets. So, it is vital to measure following key performance indicators under operational metrics. Invrntory turn over= (Cost of goods sold)/(Inventory investments) Inventory Holding days= 365/(Inventory turnover) Cargills food city has about 9. 125 inventory turnover value and the Inventory holding days is about 40 days. Interface: Cargills Warehouse/Cargills Food city interface Key performance indicator of this interface is stock holding day. Minimum stock holding days of Cargills warehouse is 15days. Interface: Suppliers Cargills retail supply chain regarding Kotmale has vertical integrated supply chain. Further it is a backward integration. In supplier interface, Cargills measures daily volume of collected milks from milk farmers in upper country. Present daily milk collection is about 60000-70000 liters. And also under waste reduction, Cargills measure KPIs regarding water consumption and energy consumption of manufacturing plant, Cargills Quality Dairies (pvt) Ltd. It measures in terms of cost per kilo. Interface: Distributor Rather than having third party distributor, Cargills retail supply chain has own distributor, Millers. In this interface, Cargills measure the delivery time of products and the transportation cost as key performance measures. Customer service metrics Customer service metrics are indications of a company’s ability to satisfy the needs of customers by meeting customer needs on timely basis and creating exceptional value to the customers. The ultimate output of this sector is satisfied customer. Through this performance measures, Cargills ensures about customer satisfaction, response time and delivery performance whether that the right product is available at right time in right place to the right customer. Cargills retail supply chain measures case fill rate, customer profitability, delivery time for customer and average response time. Interface: Cargills food city and manufacturing plant/customer interface In these interfaces, case fill rate is measured as a key performance indicator. Case fill rate=((No of cases customer received)/(No of cases in the customer order))*100 When consider about the responsive time, Cargills Food city has higher responsiveness. Another key performance indicator of Cargills Food city is time period of handling customer complaints. They handle those complaints within minimum time periods. They have a customer relation officer to handle those complaints within the premises. Cargills Food City measures four specific key performance measurements. They are customer retention, average purchase value, sales per square foot and sales increment. Customer retention rate gives the idea about customer loyalty towards the Cargills food city regarding product Kotmale Milk packet. And also it is a good indicator to evaluate the customer service level of the retail outlets. Customer Retention Rate=(((No of customers at the end of the period)-(No of new customers within that period))/((No of customers at the start of the period) ))*100 Besides customer retention rate, Cargills use Customer satisfaction metric to identify the customer perception towards the company. According to customer satisfaction rate, Cargills can decide whether the customers spread the good name or the bad name of the company. According to survey done by Cargills at the point of purchases, they have identified that a customer share the positive experience within Cargill outlets with another 2 or 3 people. But the negative experience is shared with the 8 to 10 people. So it is very important to measure this key performance indicator. The average purchase amount measures the value that gets per purchase order. Average purchase amount= (Total Revenue in a given period)/((No of purchase orders in that period)) Interface: Distribution- Millers When consider about product Kotmale UHT milk packets, Cargills supply chain has customers all over the country. They have divided country into regions and assign a day to deliver products. They have a schedule for it. That schedule goes with a route plan. In this interface Cargills’ key performance indicator is â€Å"Adherence to the route plan†. Millers do one delivery per one week per one branch with full loaded truck. Financial Metrics Financial metrics indicate whether the company’s strategy, implementation and execution are creating value for the shareholder by contributing bottom line improvements. Cargills measures the economic value as a key performance indicator. It describes about generation of wealth and the distribution within stakeholders. The direct economic value generated by Cargills group in 2013 is Rs. 10. 3 Bn. Besides that Cargills measure the return on assets, return on equity and profit margins to measure profitability of the business and the wealth generated from assets. Return On Assets=(Profit/(Total Assets))*100 Return On Equity=(Profit/(Shareholders equity))*100 Cargills measure PE ratio to identify the share value. PE Ratio= price/Earnings This PE ratio gives an image about the company portion towards the share. Higher PE ratio attracts more and more investors to the Cargills retail supply chain. Current PE ratio of the Cargills is about 50. SWOT Analysis and Recommendations SWOT analysis The competitive strategy of Cargills is business strategy alignment. Strengths Vertical integrated supply chain. The stakeholders of this supply chain, Cargills quality dairies (pvt) Ltd, Cargills warehouse and Cargills Food city are owned by one owner. That is Cargills Ceylon PLC. So it integrates supply chain partners properly. And also it reduces the transaction costs and uncertainty of the supply chain. Because of this vertical integrated supply chain, Cargills can keep a strong position in the market against international market partners. Low retail price for Kotmale UHT milk packets and high volume of sales. Cargills Food City’s slogan is â€Å"On your way home†. It mostly focuses the busy everyday consuming customers. Cargills Food city is the ease of one stop shop that gives the shopper convenience of purchasing groceries. So, customers attract to these retail outlets and buy more. Only one distributor along the whole retail supply chain. Cargills retail supply chain has only one distributor, Millers. So, the transportation cost is low. Has the largest retail outlets chain Most valuable retail brand in Sri Lanka This attracts more and more customers to the retail outlets. And Kotmale milk packet’s brand name also is more popular. Clear direction and coordination of top management It is strength of having a good coordination within supply chain. Coordination in collaborative manner improves the performance of supply chain. High technical advanced communication system Cargills has the largest IPVPN wide area network in Sri Lanka. It consist hundreds of router and network links. Through this communication tunnels, Cargills provide lot of value added services to the customers. Belongs the largest warehouse in the Sri Lanka Strong relationship with suppliers Direct link to milk farmers and rural areas Direct link with milk farmers improve the trust within suppliers and manufacturing plant. This trust is vital for long term success of the supply chain. Foe get quality raw milk, the trust is important. Long successful history Cargills retail supply chain has a long history. With an experience, they can clearly identify the obstacles in the supply chain and take action for them. Weaknesses Poor leadership in store level and operation level Storage issues at outlets, Cargills food cities Delay of payments for small scale milk suppliers Inadequate maintenance response time Manpower shortage Opportunities Capability of expanding supermarket chain After the war, market opportunities have been increased. Every successful business tends to start a business branch in Northern part of the country. So as a leading retail company, Cargills has a huge opportunity to start retail out lets and milk manufacturing plants in those areas. High demand for UHT milk packets. Rapid development in the supporting infrastructure and information technology in the world. Today the technology regarding supply chain increases without stopping. Adopting those technologies without delaying will be a competitive strategy for the retail supply chain. Adding more and more value added services Developing closer rural network and emerging markets to rural areas. Now the rural areas are also developing with high accessibility towards the market. There are better road network too. So, starting retail out lets in those areas will improve the quality of life of people and also will increase the market share. Highways. The development of road network reduces the transportation cost and travel time. Higher increase of population. The current trend of people is consuming products like Kotmale milk packets. Increase of population leads to increase of demand for these kinds of products. It is an opportunity for Cargills retail supply chain. Threats Force of competitors like keels super and Lak Sathosa. Keels super compete with Cargills Food city in terms of quality, price and customization. And also Lak Sathosa provides products at low prices. It attracts middle class and poor people highly because they concern about price rather than quality. Highly increasing inflation rate Pressure of international markets Recommendations for the improvement of supply chain The ultimate goal of any supply chain is satisfied customer. So it is important to keep existing customers while attracting new customers. When consider about profit, 80% of profits comes from the existing customers. So, Cargills should take action to retain the existing customers. For that except for having gift cards and senior citizens card systems, customer loyalty card system is highly recommended. Now, there is an increase of customer complaints towards the Cargills Food city. To handle those customer complaints efficiently and effectively, a better customer relationship management system is recommended. Cargills retail supply chain has the largest warehouse in the Sri Lanka. To improve the performance of this warehouse, RFID tracking system will be very useful. For better replenishment process, a good vendor management system is vital. For better coordination in collaborative manner within the retail supply chain of Cargills regarding Kotmale milk packets, starting a call center is vital. If Cargills can expand this retail supply chain out of the country, new markets can be achieved. Online shopping system which gives real time information will be a great an opportunity increase the market share. Today, customers’ lives are complex. They have busy schedules. So they like to do online shopping mostly. Rather than having supplier centered supply chain, it is good to have customer centered supply chain. Although it has a huge inventory in Cargills warehouse, it is a cost for the supply chain. It does not gain any revenue. So if the supply chain makes more visible to the supply chain partners, it will reduce the bullwhip effect while reducing inventory cost.