Prepare a quality, substantive paper that addresses the objectives of the assignment and the expectations set forth in the grading rubric. A minimum of 2,500 words excluding the title page and references is required. A minimum of 8 sources of credible evidence that have been published within the past 5 years is required. Use APA format The completed paper must include the following elements: Title page / Table of Contents / Section I – 10 key issues / Section II – 2-4 Mission Critical issues / Section III – Solutions / Section IV – Summary / Section V – References / Section VI – Appendix
Remember that in-text citations are required for all facts, concepts, and ideas of others in addition to direct quotations.
FreshDirect: How Fresh Is It?
FRESH ADVENTURES WITH FRESHDIRECT (FreshDirect, 6/29/2015, 2:52) and
HOW VERIZON CONNECT KEEPS FRESHDIRECT’S FOOD FRESH (Verizon Connect, 6/14/2018, 2:32)
Get a behind-the-scenes look at where FreshDirect sources its food as co-founder and Chief Food Adventurer, David McInerney, travels the world to source the best. From first-press olive oil in Italy to harpoon swordfish in Nova Scotia to fair trade bananas in Ecuador, FreshDirect travels the world to bring customers great food.
FreshDirect relies on Internet technology as the core of its business model—it’s a “food-tech” company. The second video provides more background information on the logistics powerhouse behind FreshDirect, and the technology that makes it possible for customers to receive fresh food direct to their doorstep.
Consumers have traditionally favored buying their groceries in brick-and-mortar stores so that they could choose their own produce. In this digital age, FreshDirect must go above and beyond to assure its customers that the food will surpass their expectations. The first video shows just that through examples worldwide. The second video showcases the role of technological advancements in improving food quality and delivery.
Which activities in the value chain are the most critical to FreshDirect’s ability to deliver value? Logistics clearly play a role (video 2), as does procurement (video 1).
The video presents clear links to how Internet-enabled business models are being used to improve strategic positioning. FreshDirect is able to reach a customer that, without the Internet, would be difficult to reach. The challenge for FreshDirect will be to successfully combine its differentiation strategy with one of overall cost leadership to protect against well-known imitator firms. It may be instructive to explore the limitations of this strategy. When might it not be successful?
FreshDirect has used related diversification through vertical integration of its operations, from order processing to delivering groceries to end customers. In so doing, they have bypassed the traditional grocery distributors to reduce customer prices. Through hiring experts in their respective fields, FreshDirect is able to expand their grocery offerings through related product diversification and economies of scope—using their knowledge of large-scale food processing and shipping to an ever-increasing array of foods, as the first video attests. Relatedly, the second video shows how the cold chain is maintained throughout delivery.
FreshDirect used an adaptive strategy to get groceries into the hands of consumers. The groceries are not new per se, simply the means by which those groceries are provided to consumers is pioneering. They are taking an existing idea and adapting it to a new situation.
In discussing strategic leadership and creating an ethical organization, the use of logistics management technology in the Telogis system could be the subject of compliance-based or integrity-based approaches to ethics. Monitoring drivers for safety may seem like a compliance-based approach, but is it? Are there situations where one approach may be more effective than another?
The videos highlight different aspects of an entrepreneurial orientation at FreshDirect. Students could search for instances of autonomy, competitive aggressiveness, innovativeness, proactiveness, and risk taking. For example, the first video demonstrates how FreshDirect scours the planet for unique product offerings that offer greater value due to its freshness or its unique processing. The second video showcases how FreshDirect’s innovative supply chain solutions maintain food quality to ensure success of their new business model.
