tailieunhanh - Lecture Purchasing: Selection and procurement for the hospitality industry (8th edition): Chapter 4 - Feinstein, Stefanelli

Chapter 4 - Forces affecting the distribution systems. In this chapter, you should be able to: Identify the economic forces that effect the channel of distribution, identify the political forces that effect the channel of distribution, identify the legal restrictions that effect the channel of distribution, identify the technological advances that effect the channel of distribution. | Forces Affecting the Distribution Systems 4 New YOU SHOULD BE ABLE TO: Identify and differentiate the economic and political forces that affect the channel of distribution. Describe the role of ethics in the channel of distribution. Explain the legal restrictions that affect the channel of distribution. Provide examples of technological advances that are impacting the ways in which products are distributed. FORCES AFFECTING THE DISTRIBUTION CHANNEL ECONOMIC FORCE Supply and demand Basic commodities are typically acquired through a bidding procedure Co-op farmers Established market prices Perceived value Perceived quality + perceived services / EP cost ECONOMIC FORCE (CONT.) What is the difference between AP price and EP cost? Monopolistic competition POLITICAL FORCE Lobbyists –The NRA Primary sources have the most influence Typically used to influence produce availability, prices, and channel member behavior ETHICAL FORCE Define ethical behavior What is ethical? Codes of ethical | Forces Affecting the Distribution Systems 4 New YOU SHOULD BE ABLE TO: Identify and differentiate the economic and political forces that affect the channel of distribution. Describe the role of ethics in the channel of distribution. Explain the legal restrictions that affect the channel of distribution. Provide examples of technological advances that are impacting the ways in which products are distributed. FORCES AFFECTING THE DISTRIBUTION CHANNEL ECONOMIC FORCE Supply and demand Basic commodities are typically acquired through a bidding procedure Co-op farmers Established market prices Perceived value Perceived quality + perceived services / EP cost ECONOMIC FORCE (CONT.) What is the difference between AP price and EP cost? Monopolistic competition POLITICAL FORCE Lobbyists –The NRA Primary sources have the most influence Typically used to influence produce availability, prices, and channel member behavior ETHICAL FORCE Define ethical behavior What is ethical? Codes of ethical behavior Examples LEGAL FORCE Sherman Act (1890) Meat safety legislation Sinclair Lewis’ The Jungle Pure Food Act (1906) Meat Inspection Act (1907) USDA established in 1862 Primarily focuses on meat, poultry, and eggs LEGAL FORCE (CONT.) Meat safety legislation Poultry Products Inspection Act (1957) Wholesome Meat Act (1967) Wholesome Poultry Products Act (1968) The Federal Food, Drug, and Cosmetic Act (1906) FDA administers this law Evaluates contaminate levels LEGAL FORCE (CONT.) Seafood safety legislation PUFI for a fee FDA has authority to examine seafood in interstate commerce. Federal Trade Commission (1914) Amended by the Wheeler-Lea Act (1938) Deals with advertising, deceptive promotions, monopolies, and conduct in the marketplace LEGAL FORCE (CONT.) Clayton Act (1914) Used to control antitrust violations Tying agreements Exclusive dealings Perishable Agricultural Commodities Act (1930) Control interstate commerce Prohibits unfair practices in sale of produce Added PAC (1930),