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The new CEO of SAB distribution has come up with a proposal for the Central Transport. In the last five to seven years, the competitive market place for SAB has continually been tough. There have been more firms into the industry. This poses a significant threat to SAB since it causes them to take drastic measures. These adjustments that they made caused their relationship with Central Transport to deteriorate. However, the new CEO, Susan, hopes that there can be a reunion for the better good. She thinks that they can be more influential as a team. This way, they can attract more retailers in other nations. Therefore, the essay below is about the suggestions of a positive response from Jean, Central Transport CEO, to Susan, the new CEO for SAB Distribution.
SAB distribution is a company that deals with the delivery of goods and services to consumers. It even offers door to door services to its consumers. It operates in over 200 countries in the world. Some of the products that it delivers include freight, documents and parcels. It has about 47 jet fighters and 26,000 road vehicles. Therefore, this is a company that relies on transport. Its relationship with central transport is also necessary. This is because they both deal with transport. Therefore, the essay below is about the relationship between these two agencies and how it has fluctuated over time. SAB may have the strategies and techniques needed to be successful (Rosen 2009). However, they can achieve much more with Central Transport, which ha more experience and influence in the sector.
Problems and Other Key Challenges
The major problem for SAB is the competitive market. The increase in competition in the industry causes the distributing organization to be at risk. Therefore, there is a need for new and effective strategy. Susan intends to come up with a strategy that includes involving third party logistics. This includes other companies that deal with warehousing, transport and delivery and inventory management. Therefore, this places Jean in a dilemma. The response to such a proposal can be a tricky one. This is because the proposal has a lot of challenges. The adoption of the logistics of third [parties might not work. These other companies may even decline to the offer. Therefore, the plan might not go on as predicted.
However, if the plan goes as predicted, it can have numerous advantages to both agencies. Central transport can gain connections on more and more countries. Therefore, they would have their services distributed to many countries in the world. This comes with numerous profits (Kroger 2000). SAB will supply its products in a wide range of geographical regions. The attraction of key companies in the world like Wegmans Foods Market can be most helpful. Therefore, this is a risk that can be worth taking.
Recommendations for Improvement
The adoption of a new strategy can have a significant effect on the labor force. This means that the CEO of SAB should be careful when making radical changes in the agency. This is because such an act led to some people dropping from the organization. This can cause the loss of experienced personnel, as well as useful partners. This is the case that occurred for the SAB and Central Transport (Straus 2002). Therefore, this plan is favorable. SAB should push on with it. Jean should authorize and accept the proposal. The only thing is that they should be most careful and not fast to make any decisions in a rush mode. This way, SAB can make significant improvements in its activities and cause a strong impact on its future (Harsen 2009).
From the essay, it is clear that decision making on strategy change is crucial. It should be done carefully if it is to take effect in an organization. It is also clear that Central Transport should adopt and accept the proposal by Susan. This can be the beginning of something great. It can have an enormous impact on both companies. This is because it serves their interests.