Running head: VF BRANDS CASE STUDY 1

VF Brands Case Study

Institution:

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1. The Contrast Between the Benefits of Utilizing Large Network of Suppliers and Using

Company-Possessed Plants

There exist numerous benefit-based divergences between the application of outsized

networks of distributors and exploitation of plants owned by the company. First, the merchant

connections are accompanied by instability while compared to the firms which control their

plants. However, the business sector keeps on changing but firms’ management has the

capability of predicting such adjustments hence thriving even in the higher competitive

environment. However, the market competition has always been focusing on saving costs but

presently this trend has changed thus forcing business people to come up with economical ways

of running their distribution networks. On the other hand, the products offered by firms are

playing a vital role on determining the profits and costs to be encountered after the sale (Kerin &

Peterson, 2013).

Moreover, the external distribution network is inflexible whereas the supply of plants

owned by firms is elastic. For instance, the company is able to produce and distribute varying

quantities of goods based on the consumer demand. In contrast, the large network suppliers can

only request their customers to wait for a given period for the required order to be processed.

Indeed, the elasticity concern is making the distribution from the plants owned by the firms to

appear more reliable and convenient (Laczniak & Harris, 2016).

The large networks supplies are not trustworthy whereas it is safe to depend on the

distributors from plants possessed by firms. In this case, there is no trust amid the agencies

involved in big distribution network since suppliers keep on fighting over available customers.

Conversely, the parties transacting in this large network sometimes tarnished the name of their

competitors for them to rescue contracts hence leading to fierce conflicts which cause fluctuation
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of prices. Likewise, the distribution networks are also lacking sufficient coordination regarding

inventory distribution. Unlike in large distribution network, it is easier to coordinate with

suppliers in the firms controlling their own plants. This relationship creates a room where

suppliers can interact with consumers hence leading to increasing sales (Laczniak & Harris,

2016).

2. The Essence of Having a Developed Strategic Supplier Connection to Both Distributors

and the Company

The advanced planned supplier network benefits both the company and dealers in many

ways. For instance, this affiliation creates conviction necessary for the firm to flourish in the

market. Conversely, the distributors always search for consistent clients and this association will

boost reliability. Similarly, the good liaison will ascertain that firms have reliable distributors

who shall often offer the first priority to the company during orders processing. Moreover, the

existence of an effective link between company and suppliers enables the firm to get the needed

products on credit. Also, the link between suppliers and consumers assures the distributors of

ready market hence encouraging them to stock lots of goods without worrying about making

losses in the market (Coe & Yeung, 2015).

3. Analysis of Planned Growth Strategy of VF Brands Based on their Acquisitions

The VF Brands has been trying to reach many customers as possible through acquiring

other firms. However, the main motive for possessing different companies is to reinforce the

company’s economic performance. Indeed, the VF Brands are able to procure other firms

because of having increased revenue, large operational scale, and big market share. While

owning other brands, this company sometimes sell their matching goods to the acquired
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organization as well as diversifying its products and activities in different geographical areas

(Coe & Yeung, 2015).

In the process of acquirement, VF Brands tries its level best to retain the stakeholders of

the possessed firm. The reason behind maintaining these individuals is to ascertain that the firm

competitive powers have remained intact. For instance, the preservation of workers ensures that

the business has not lost skilled individuals hence avoiding chances of empowering their

competitors. Moreover, VF Brands avoid interfering with the management practices of the

acquired firm particular when there is clear evidence that this firm had been dominating the

market because of quality production. Furthermore, after owning a given firm, this company is

more observant on the distribution trends to escape chances of altering the effective relationship

between the suppliers and consumers. Indeed, VF Brands always retain the identities of the

acquired firms to ensure that everybody is satisfied (Kerin & Peterson, 2013).

4. The Scrutiny of VF Brands’ Sourcing Plan

The VF Brands should not use a mishmash of “Third Way” sourcing approach, traditional

sourcing strategy as well as enlarging internal manufacturing since the former application of

these strategies were not beneficial. For instance, the use of traditional sourcing slows the

operations and it is time-consuming. Likewise, the internal manufacturing is expensive and its

implementation cannot allow the company to serve its clients well. The internal manufacturing

method facilitates quality production, though it is not dependable. However, I would recommend

this firm to use Third Way Sourcing approach. First, this course enables the firm to outsource

from distributors with the capability of meeting customer needs. Similarly, subcontracting is also

a crucial activity since it minimizes the costs and allows the firm to transfer risks to other

companies. However, it is good to note that outsourcing require huge sums of money during
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investment stage and it needs very strict guidelines for it to operate effectively (Kashmanian,

2015).
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References

Coe, N. M., & Yeung, H. W. C. (2015). Global production networks: Theorizing economic

development in an interconnected world. Oxford University Press

Kashmanian, R. M. (2015). Building a sustainable supply chain: Key elements. Environmental

Quality Management, 24(3), 17-41.

Kerin, R., & Peterson, R. (2013). Strategic marketing problems: Cases and comments (13th Ed.).

Upper Saddle River, NJ.

Laczniak, G. R., & Harris, F. (2016). Ethics in marketing: International cases and perspectives.

Taylor & Francis.