Answer 1

Vertical integration is a term used to describe the extent to which Fakhruddin's own production system
or service facility oversees the whole supply chain. Unique products or (market-specific) services are
offered by various links in Fakhruddin's supply chain, which are subsequently combined to satisfy a
specific demand.

Benefits of Fakhruddin’s Vertical Integration:

 granted exclusive access to a limited resource.

 Gain access to downstream distribution channels that might be inaccessible otherwise.
 Make it easier for investors to access highly specialized assets where upstream or downstream
players would be hesitant to make a commitment
 Fakhruddin's Contributes to the Development of Core Competencies.
 If common ownership leads to tighter geographical proximity, cut down on Fakhruddin's transit
expenses.
 Enhance the coordination of Fakhruddin's supply chain.
 Give them more chances to stand out by giving them more input control
 Upstream or downstream profit margins according to Fakhruddin.
 Raise the entry obstacles for possible rivals; as an illustration, Fakhruddin's company may be
Factors Against Vertical Integration for Fakhruddin’s

Vertical integration tends to be less appealing due to the following situational variables.

 The activities' key competencies differ greatly from one another.

 The activities that are vertically neighboring are in very dissimilar industries. Manufacturing,
for instance, differs significantly from retailing in Fakhruddin.
 The addition of the new activity puts the company in rivalry with a rival that it must work
with. Then, rather of being seen as a partner, Fakhruddin's may be seen as a rival.
 The quantity demanded of Fakhruddin's supplier is substantially lower than the production
of the product at the lowest effective scale would need.
 As cumulative quantity rises, Fakhruddin's available commodity and production cost both
considerably decline.

What will be the advantages and disadvantages of extending the company’s scope of operations via
vertical integration?

Answer:

Advantages:

Through the opening of distribution centers in new areas and the acquisition of a completely new
brand, vertical integration may be advantageous for Fakhruddin's. The best chance of expanding
Fakhruddin's company abroad is to stay in the supply-and-distribution market that it already
dominates. For instance, Fakhruddin increased his company's attractiveness to customers around
the world by purchasing food makers.
 Disadvantage

If the company decides to get into production, Fakhruddin's might not be able to compete with the
low pricing provided by small manufacturers that cater to a wide range of customers. As an
illustration, a tire manufacturer that also produces automobiles is unlikely to sell its products to
other automakers, which restricts its capacity to benefit from economies of scale by reaching a
larger market.

What are the dominant economic traits?

Answer:

 The extent of the conflict

 Backward/forward integration frequency
 The type and rate of technological advancement
 Profitability of the industry
 Effects of experience curves and scale economies
 Utilization of capacity and resource needs
 Features of the product and the target market
 Barriers for entry and exit
 The quantity of rivals and their relative sizes
 Market size and expansion rate

What are the key success factors?

Answer

In project and company management, a component that is essential for success is referred to as a
critical success factor (CSF). Understanding not just each vital success element, but also the variations
between the keys and the numerous key result regions related to their diverse duties, is necessary to
meet their aims.

How is the competition and challenges changed for Fakhruddin over the last decade?

Answer

Many firms have realized how unprepared they were for interruptions in the local and global supply
chain in light of recent events. To counteract the effects of supply disruptions, Fakhruddin must now
better manage their inventory and diversify their supply chain. More businesses are starting to
understand the importance of shipment tracking. A key factor in supply chain issues, such as delays and
missing inventory, is human error. More and more firms are relying on barcode solutions as a result of
this demand for better tracking.
Construct and describe the value chain of a Fakhruddin Store/outlet.

Answer.

To foster greater customer loyalty, Fakhruddin offers in-store services. Fakhruddin has always aimed to
give each customer a distinctive Fakhruddin Experience when it comes to retail. The caliber of the
service training offered is one of the key elements that distinguishes it from rivals. The production of
beverages for customers creates a lot of value for the company.

How does the value chain change in the case of event-based catering?

Answer:

Planners of corporate and social events are essential to the sector. This category includes employees
working in corporate affairs and human resources departments of large corporations, event planners for
both business and non-profit organizations, and private individuals organizing their own gatherings (e.g.,
weddings, outdooring, parties etc.). The following model depicts the entire process, from the acquisition
of raw materials to the distribution of finished goods to clients. In a corporation, all of these various
types of data are continuously flowing around, along with cash and other resources.

What are the activities that may be outsourced or revamped to make it more efficient?

Answer:

Every modern firm needs a strong online presence. It's easy for business owners to engage with their
present and potential consumers by giving regular updates, responding to inquiries, and taking action on
comments. It's a wonderful opportunity to raise one's online profile without having to invest any more
money. The process is time-consuming, which is a drawback for many business owners. You might
delegate the management of your company's social media promotion to a social media marketing
specialist so you can focus on other things.