Our Strategy Race: Locating the core business. Case of Study: Christine Ferber Confitures, France.
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1 Our Strategy Race: Locating the core business. Case of Study: Christine Ferber Confitures, France. Christine Ferber marmalades from a petit village in Alsace have reached a famous recognition all over the world. Her jam pots with their frilly pink polka-dot lid covers and their white bows, also are served and sold in luxury hotels like the Crillon and George V in Paris, the Four Seasons in Hong Kong, or the Connaught in London. Today we will understand what is core business with the example of Christine Ferber jams business. Picture from elle.com 1
2 Locating a core business as a junction in a network of industries A business can be thought to exist at a junction in a network of industries that produce or take inputs from suppliers and produces various finished products (or services). H. Mintzberg. What is supply chain management? Supply chain is a system that links a company with its suppliers and customers or buyers. Supply chain management (SCM) tries to optimize this system by 1. Getting the right things 2. To right place 3. At right time 4. In a cost-effective manner Primary What is upstream-midstream-downstream? In any business, we get input (raw material, labor), we process it and we deliver outputs (goods/service). In Supply chain management the industries have been classified as being in the primary (raw material extraction and main conversion), secondary (manufacturing) and tertiary (delivery or other services). Secondary Tertiary Towards suppliers to your company (include intermediaries if any) Towards consumers (plus distributor or intermediaries if any) 2
3 Locating a core business as a junction in a network of industries Extraction Processing Fabrication Assembly Wholesale Local or Intl Retail & Internet Primary Secondary Tertiary 3
4 Locating a core business as a junction in a network of industries: Case of Study: Christine Ferber Jams, Alsace-France. Extraction or Suppliers Processing Fabrication Assembly Wholesale Local or Intl Retail & Internet Harvest and collecting own fruits (20%) Buying fruit from other French farms (80%) Suppliers of sugar, spices, liquor, glass and packaging inputs Farming Fruit s Glass Supplier s Packaging Supplier s Fruit Processing Weighting incoming fruit Unloading Sampling and classification Washing Peeling and Trimming Cutting Pitting and Coring Jam s Production Jam s Production CORE BUSINESS Boiling prepared fruit with other products (sugar, lemon, spices) Pouring the jelly in glass recipients Packaging and labeling Storage Ferber s shop Alsace French Dept. Stores Hotels and Restaurants Intl. Wholesalers Ferber s Shop Alsace Gourmet Food Pastry Specialties On-line Distributors industry Primary Secondary Tertiary 4
5 Locating a core business as a junction in a network of industries: Case of Study: Christine Ferber Jams, Alsace-France. Questions for next session: 1. What is Christine Ferber core business? 2. What is Christine Ferber industry? 3. Can you tell which is the circle (or circles) that help us to identify the core business? See slide Can you distinguish the characteristics which enable Christine Ferber to achieve competitive advantage to survive in her own industry and her competitors? 5. Do you think Christine Ferber business is ready to approach shark investors or private equity investors? 5
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