Vertical Coordination In Malting Barley AAEA啤酒大麦 AAEA垂直协调.pptVIP

Vertical Coordination In Malting Barley Coors’ Strategic Decision How can our supply chain management structures withstand the economic threats of a dynamic world market? Case Objectives Determine the theoretical framework that best describes Coors Brewing Company’s decision to contract their malt barley input needs Determine how the resulting analysis will apply in Coors’ attempt to capture more market share in the changing world economy Theoretical Framework Transaction Costs Theory Agency Theory Contractual Incompleteness Key Aspect: These 3 theories are not mutually exclusive and to a large extent intertwined Theoretical Framework Three Primary drivers: Uncertainty Asset Specificity 3. Measurement Costs Uncertainty of Barley Prices Three Primary drivers: Uncertainty Asset Specificity 3. Measurement Costs Comparison of Standards Three Primary drivers: Uncertainty Asset Specificity 3. Measurement Costs Additional costs in a contractual agreement Legal fees Agronomic costs Negotiation costs Selection of growers Costs associated with the transfer of risk from producers to Coors via contracts High uncertainty associated with Barley prices and quantities Highly specific needs for quality inputs Implications associated with measurement costs Therefore “Transaction Costs” is the primary theory that best describes Coors’ malt barley contracting program Agency Theory Coors addresses the issues associated with agency theory through Unique barley variety seed purchased from Coors Strict specifications Contracts not renewed if quality standards are not met Improved information technology Contractual Incompleteness Concepts of Contractual Incompleteness will always be present Bounded by rationality Doesn’t specifically motivate their decisions, nor does it best describe their structure Prospects for The Future Tougher competition and tighter margins Changing legal requirements GMO Traceability ISO 9000 Food Safety Beer is