Question

You have been asked to advise the Squat and Gobble Restaurant chain. The Squat and Gobble is a global fast food restaurant chain specializing in turkey sandwiches with cranberry sauce. They have grown tremendously over the past twenty years through both acquisition of competitors in the United States and licensing to other countries.

They have acquired over 10 smaller competing turkey restaurants (Pilgrim's Progress, Tom Turkey Express, etc.) over the last two decades. Each of the restaurant chains that they acquired had their own individual supply chains in terms of procurement, forecasting, ordering, inventory management, delivery, etc. Squat and Gobble's policy for acquired restaurant chains is to convert their name to Squat and Gobble, but to let them operate independently as they had before.

Internationally, Squat and Gobble has grown globally by licensing its name and format to entrepreneurs in other countries. An investor would simply pay Squat and Gobble a licensing fee and share of the revenue and in return, they would have exclusive rights for the Squat and Gobble name for all restaurants in that country. They would be responsible for their own supply chains in terms of procurement, forecasting, ordering, inventory management, delivery, etc.  

The end result is that the Squat and Gobble restaurant chain has 2000 stores in the United States and another 1500 in 30 different companies across the world.

Part 1)

Which of the following statements are true for the current supply chain organization of the Squat and Gobble Restaurants? (Select all the correct answers)

1) There is most likely just one method of forecasting used across the Squat and Gobble restaurants

2) Given the independence of the newly acquired firms, leveraging economies of scales is unlikely

3) There is likely many different methods of forecasting used across the Squat and Gobble restaurants

4) The firm has a decentralized supply chain organization

5) None of the above

Part 2)

You have been brought in to try to help them determine which functions to centralize versus keep decentralized.

Select the top two supply chain functions or processes that you think should be centralized. (Select the two correct answers)

1) Labor Planning at Restaurants

2) Strategic Procurement and Sourcing

3) DC operations in each country

4) Sales and Operations Planning

5) None of the above

Answer 1

Which of the following statements are true for the current supply chain organization of the Squat and Gobble Restaurants? (Select all the correct answers)

Answer:- The correct options are:-

2) Given the independence of the newly acquired firms, leveraging economies of scales is unlikely

3) There is likely many different methods of forecasting used across the Squat and Gobble restaurants

4) The firm has a decentralized supply chain organization

You have been brought in to try to help them determine which functions to centralize versus keep decentralized.

Select the top two supply chain functions or processes that you think should be centralized. (Select the two correct answers)

2) Strategic Procurement and Sourcing ( As it will help in having greater bargaining power and thus helping economies of scale)

3) DC operations in each country