Tequila and Bacardi: An Unsavory Cocktail?

Tequila and Bacardi: An Unsavory Cocktail?

Francisco Alcaraz was a master distiller of tequila whose scientific knowledge, passion, and unconditional commitment to quality contributed to producing Patrón, one of the best tequilas in the world.


Video spotlightPatrón Tequila: Our Story


Along the way, the business success of Patrón has attracted many investors, including Bacardi.

Will Bacardi’s business model of favoring industrial over artisanal production pose a risk to the quality reputation of Patrón?

 

This post is based on the Bloomberg article, Patrón Made Tequila Top-Shelf. Will Bacardi Dilute It?, by T. Genoways, July 31, 2018. Image source: C Squared Studios/Getty Images.

Discussion Questions:

1. According to the Kano model, what type of quality does Alcaraz want to produce? Will there be a shift if Bacardi wants to boost volume?

Guidance: Review basic quality, performance quality, and excitement quality. Given Alcaraz’s insistence on premium quality as opposed to volume, he aims at producing tequila that will deliver excitement quality. The blind taste test at Spago provides further evidence of this approach to quality. Discuss the potential for a “downgrade” to performance quality if Bacardi wants to boost volume.

2. What are the pros and cons of Bacardi’s production methods?

Guidance: Continue reading

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Fed Up With the DMV? You’re Not Alone!

Fed Up With the DMV? You’re Not Alone!

Frustration with the DMV’s long wait times is nothing new. Yet, this Sacramento Bee article reveals extreme wait times at the DMV leading to the public’s exasperation and anger.


Video spotlightCalifornia DMV customers angry over rising wait times


Over the past year, wait times have increased by 60 percent and can reach 7 hours. An increase in demand combined with longer service times and insufficient capacity have created a situation that is unbearable enough to trigger lawmakers’ intervention.

 

This post is based on The Sacramento Bee article, Drivers Are Fed Up With the DMV. So Are California Lawmakers., by B. Anderson, July 30, 2018, and The Sacramento Bee video, California DMV customers angry over rising wait times, by B. Anderson, July 27, 2018. Image source: Ingram Publishing.

Discussion Questions:

1. What are the factors responsible for the unacceptable increase in wait times? Relate them to the characteristics of waiting lines.

Guidance: The factors include issue of new drivers’ licenses to comply with REAL ID Act (increased arrival rates); delays in hiring more workers (insufficient capacity, not enough servers); servers’ difficulty adapting to new system (longer service times); customers’ procrastination to renew registration (increased Continue reading

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Chick-fil-A’s Chicken Shortage

Chick-fil-A’s Chicken Shortage

July 18, 2018

What happens when Chick-fil-A has no chicken?

In Texas, Chick-fil-A had to temporarily close two restaurants because an issue was characterized as a “delivery delay.”  This problem was much smaller than the KFC chicken shortage in the UK earlier this year, when almost all of its restaurants were shut down for lack of its key ingredient, but it none-the-less disrupted the organization’s operations in a very significant way.

In an unrelated issue, in mid-June, In-N-Out shut down in Texas due to an unspecified problem with the quality of its hamburger buns.

This post is based on the Inc.com article, Oh No, Chick-fil-A. First KFC, Then In-N-Out. Now You Too?, by Bill Murphy, Jr., June 30, 2018. Image source: Livingpix/Getty Images.

Discussion Questions:

1. How does this article pertain to operations strategy and the socio-cultural dimension of the external environment?

Guidance: While the causes behind these product shortages have not been clearly identified, the issue of stockouts may become more widespread in the future due to the shortage of qualified truckers in our nation.  Trucking is often viewed as a dangerous and difficult occupation, and companies are struggling to find enough drivers.  Even one cancelled or Continue reading

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