Discussion Questions: (Questions 1, 2, 7,and 9)

1. How would you characterize the competitive strategy of a high-end department store chain such as Nordstrom? What are the key customer needs that Nordstrom aims to fill?

2. Where would you place the demand faced by Nordstrom on the implied demand uncertainty spectrum? Why?

3. What level of responsiveness would be most appropriate for Nordstrom’s supply chain? What should the supply chain be able to do particularly well?

4. How can Nordstrom expand the scope of strategic fit across its supply chain?

5. Reconsider the previous four questions for other companies such as Amazon, a supermarket chain, an auto manufacturer, and a discount retailer such as Walmart.

6. Give arguments to support the statement that Walmart has achieved good strategic fit between its competitive and supply chain strategies. What challenges does it face as it works to open smaller format stores in urban environments?

7. What are some factors that influence implied uncertainty? How does the implied uncertainty differ between an integrated steel mill that measures lead times in months and requires large orders and a steel service center that promises 24-hour lead times and sells orders of any size?

8. What is the difference in implied uncertainty faced by a con- venience store chain such as Seven-Eleven, a supermarket chain, and a discount retailer such as Costco?

9. What are some problems that can arise when each stage of a supply chain focuses solely on its own profits when mak- ing decisions? Identify some actions that can help a retailer and a manufacturer work together to expand the scope of strategic fit.