Write three pages Strategic Alternatives base the the attachment that i give to you, the Strategic Alternatives must base on Industry Impact on that current events.
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Current Environment: American Supply Chain
General Company Description
The Astro Group company is a serviced based organization established in 1990, to serve
the public with its outstanding food and service experience. Established in Portland, Oregon as
an on-site food service company which specializes in corporate catering and dining experiences,
Astro Group has been growing and evolving over the years to outmatch the competition and
satisfy the customer. Our business model originated from over twenty-five years of authentic and
unique corporate and event catering. The companys revenues are expected to reach US$65
thousand per month, a 3% increase from the previous month, indicating increasing demand and
great avenues for growth. In addition to corporate dining, Astro supplies event management and
planning services, from booking flights and hotel reservations to offering personalized assistance
and security to all customers during their experience. What we are, is more than foodservice. We
Strive to become a leader in corporate dining and hospitality services by providing quality
expertise to all clients; build relationship and trust to become a well know brand of service.
To exceed the expectations of guest in every possible way through exceptional service.
Our mission is to create a long-lasting memory for our clients that makes their experience
unforgettable and to continually improve our services to exceptional levels.
American food Supply Chain
The food supply chain business in the U.S. is walking between heaven and hell. This
business is facing the pressure between farmer and restaurant and has to coordinate drivers and
monstrous trucks at the right location for the right time. Its net profit, compared to its revenue
and cost, is very low. Actually, so does the restaurants and farmers, since they are making profits
out of daily elaboration and they dont have much time for rest. Therefore, who benefits the most
from the food supply chain in the U.S.? The U.S. government obviously. Government taxes the
farmers, supply companies, restaurants, and consumers, not mentioning the extra taxes from the
ejection of monstrous trucks and drivers who sleeps at rest stations by the highways.
The current supply chain works well America since companies have developed a systematic
way to make them profitable. However recently the new electric pilotless truck introduced by
Tesla and Chinese-American Trade war might influence the industry a bit, but not huge.
Compare to other regions such as European Union and East Asia, Americans are heavily relying
on the trucks instead of trains. The way Americans built their supply chain does not differentiate
from other countries very much. The link between supply chain and catering business is flexible
depends on the demands. Unlike regular restaurants where a number of customers are easier
predicted, catering business would have to prepare the raw material based on customers’ order.
Therefore, the Astro Groups supply chain is not fixed on location nor time.
Also, looking at the American market, there has a rise in the demand for traceability from
the consumers. This case has not been different for Astro group. With the high prevalence of the
diseases that are caused by dietary habits, many of the consumers want to see the details of what
they are eating, for instance, how it was packaged, grown, and transported. Since Astro is
looking to cultivate customer loyalty, they will also need to ensure that they account for what is
offered to the clients. This will breed a culture of trust between Astro and the clients. Also, by
offering this kind of information to the customers of Astro group it will build upon the brand
reputation of the company, and hence increasing the profits. For Astro to be able to account for
what is offered to the customers, it will involve keeping watch of the supply chain from which
they are obtaining the supplies.
In the American food supply chain, the role of communication between the different actors
cannot be understated. Establishing proper channels of communication is vital since there is
fragmentation of the different actors in the food supply chain. Additionally, for the simple food
items that are served by Astros, there could be many different actors involved who do not know
of each other role. If communication lacks in such a situation, then it could affect the traceability
of the food items which is one of the most vital aspects of establishing trust with the clients. Due
to this, it is vital for Astro to prioritize communication with the various suppliers. This will be
achieved by opening channels of communications with the suppliers who can be trusted. This
will benefit not only the end consumers but also the food producers since it will eliminate the
role that is played by third parties.
Even though the American food supply chain has been operating in a manner that can be
deemed as efficient, there is a need for strong legislation that will be aimed at tying the loose
knots. Take, for instance, the occurrence of food safety incidences. There needs to be an
increased focus on regulating food safety. This is vital considering that it will directly affect the
health of the consumers. Take an instance whereby Astro group offers food which is not safe due
to the lack of adequate laws that govern food safety. This will not only hurt the sales at Astro but
also affect the reputation of the company. Therefore, it is important to put in place legislation
that will govern the American food supply chain in the form of ensuring the safety of the foods
that ends up at the dinner plates of the consumers.
Nonetheless, Astro group has also been reeling from the effects of the monopolization of
the product distribution in the American food market. This has taken the form forcing the Astro
group to buy foodstuff from a specific supplier and hence limiting the choices. With few
companies controlling a huge chunk of the supply chain, there are a few options for Astro. When
looked at keenly, the monopolized market is not only unhealthy but also it increases the cost of
doing business. For example, Astro does not have the freedom of choosing the best supplier from
the lot. Additionally, another negative aspect of the monopolization of the American food supply
chain is the fact that what is eaten by the clients of Astro will be determined by a few
individuals. In such a case, the supplier will reap huge benefit at the expense of Astro group and
its clients. In other words, Astro is put at the mercy of the suppliers. This breeds uncertainty in
business since if the suppliers decide to raise the prices of the food supplies Astro will have to
either cope with reduced profit margins or increase the price of the food on the menu which can
be bad for business.
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