The Logistics Dilemma

Sean (COO) and Lauren (CFO) meet in their Chicago office to review their make-or-buy decision regarding delivery operations.

The Logistics Dilemma

Listen and choose the right answer

What is Lauren's main concern regarding the delivery fleet?

• Whether they can build the capability without excessive total cost of ownership
• Whether Marcus Vance will accept their dinner invitation
• Whether the board will fire the entire executive team

How does Sean describe their current reliance on the third-party supplier?

• As a brilliant strategic alliance
• As an unacceptable dependency risk that is getting out of hand
• As a commoditised service that works perfectly

Who is Marcus Vance?

• The CEO of a rival firm in Boston
• Sean's former deputy who now runs Apex Transport
• The chairman of the board in Chicago

What solution does Marcus propose through Sean?

• A complete buyout of their Chicago division
• A joint venture where Sean's company holds the majority stake
• A white-label product agreement for software

Listen again and complete the sentences

• Sean: Lauren, we've got to finalise our ____ regarding our delivery fleet before the board meeting on Friday.
• Lauren: What worries me is whether we can actually build that ____ without ballooning our total cost of ownership.
• Sean: I understand your hesitation, but how dependent we've become on our ____ is getting completely out of hand.
• Sean: We could always establish a strategic alliance or sign a licensing deal instead of a full ____ .
• Lauren: Now you're talking sense. Who did you have in mind for a ____ , or were you just brainstorming?

Sources: photo by Vlada Karpovich on Pexels