Mack Trucks Roll Off the Roanoke Lines

Mack Trucks Roll Off the Roanoke Lines

October 22, 2020
Anita Lee-Post, Ph.D.

Mack Trucks has started production on medium-duty trucks in its brand-new Roanoke Valley Operations (RVO) facility in Virginia.

Mack invested $13 million in equipment and tooling in the RVO facility to produce only medium-duty models after its exit from that market segment 18 years ago.  The facility also employs production methods and standards that comply with Center for Disease Control’s COVID-19 guidelines.

Video Spotlight: 

This post is based on the CCJ Digital article, Mack begins production of its new medium duty entry, by Jason Cannon, September 22, 2020, and the YouTube video in the Spotlight. Image source: Narongrit Sritana/Getty Images

Discussion Questions:

1. What role does forecasting play in Mack’s medium-duty truck operations?

Guidance: Forecasting has helped Mack to anticipate a 40% reduction in the new truck market and a production delay due to COVID-19.  As a result, Mack is able to proactively plan its truck production to meet customers’ demand in the medium-duty market segment.

2. What are the reasons for Mack’s decision to invest in its Roanoke Valley Operations facility?

Guidance: Mack needs a new facility Continue reading →

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Disruptions to Tea Supply Chain

Disruptions to Tea Supply Chain

October 21, 2020
Anita Lee-Post, Ph.D.

Disruptions to the global tea supply chain, from the movement restrictions of the pandemic to weather issues, are causing serious supply problems with tea.

These disruptions, coupled with an increase in tea consumption at home for its health benefits, have resulted in a 50% surge in wholesale prices of tea, a 1.7% cost increase in packaged tea bags, and a 9.6% price increase in liquid tea.

Video Spotlight: 

This post is based on the Forbes article, Here Is Why Your Next Cup Of Tea Will Cost More Money, by Lana Bandoim, September 24, 2020, and the YouTube video in the Spotlight. Image source: Shutterstock / Tatyana Soares

Discussion Questions:

1. What areas of the tea supply chain are affected by the COVID-19 pandemic?

Guidance: The pandemic affects the entire tea supply chain.  The lockdowns disrupted tea leaf-picking during the spring harvest season.  They also delayed shipments by a month.

2. What factors have contributed to a rise in tea prices?

Guidance: The factors include a shortage of tea supply and a surge in tea demand.  Tea supply is Continue reading →

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Harley-Davidson Motors Out of India

Harley-Davidson Motors Out of India

October 15, 2020
Anita Lee-Post, Ph.D.

Harley-Davidson has ceased manufacturing operations in India, succumbing to low-cost rivals, high taxes and declining discretionary spending.

With an average sale of 3,000 units a year, Harley-Davidson failed to gain a foothold in the Indian market of 21 million motorcycles and scooters.

Video Spotlight: 

This post is based on the BBC article, Harley-Davidson to exit world’s biggest bike market, by Nikhil Inamdar, September 25, 2020, and the YouTube video in the Spotlight. Image source: ChameleonsEye/Shutterstock

Discussion Questions:

1. What factors contributed to Harley-Davidson’s decision to enter the Indian market a decade ago?

Guidance: The entry factors include (1) India is considered the world’s most lucrative market with an annual demand of 17 million motorcycles and scooters; (2) Harley wants to grow the brand beyond its local U.S. customer base; and (3) a trade agreement.

2. What factors contributed to Harley-Davidson’s decision to exit the Indian market in 2020?

Guidance: The exit factors include (1) demand is too low to derive cost efficiency; (2) high taxes and import tariffs; (3) a slowdown of discretionary spending; and (4) an inability to compete with Indian brands.

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