Assess the steps used by Banneker to transform itself into a supplier of value added supply chain management services

1. The steps used in the transformation of Banneker included finding out the changing needs of the customers such as inventory management among others; overhaul changes in human resources to get individuals who were more appropriate for the new business; implementation of changes in the top level management to include a marketing consultant; development of solid processes and procedural foundation through adoption of ISO certification tool and training of employees on this tool; development of a quality policy statement as well as a mission statement.

   2. Should Banneker stay with its one primary customer arrangement or try to expand its customer base in order to diversify? Why or why not? Should there be a maximum percentage of business that comes from one customer?

   Banneker should avoid staying with only one customer since it had taken adequate time to establish itself as well as learn from its main customer. It had already established a lasting relationship with this customer hence should be ready to expand its customer base since it was in a position to offer quality services. A maximum percentage of business derived from one customer should be established so that Banneker could be able to look for other business contracts with other customers, which would enable them increase their customer base as well as diversify.

   3. Should Banneker merge with the three other businesses? What are the advantages and disadvantages of this consortium? What should its exit strategy be?

   It is recommendable for Banneker to enter into a merger with the other three businesses. The advantages of this merger include the ability to grow by acquiring larger contracts; it would add more value to larger contracts acquired since each business specialized in a particular service; the added value services would also be at a less cost and provide more solutions. The disadvantages for the merger include the possibility of having different work ethics and goals; there were chances that conflicts would arise due to various reasons for instance due to their differences during sharing of profits. An exit strategy would involve ensuring each of the businesses had grown enough to be able to handle larger contracts on their own.

   4. Should Banneker develop the philanthropic or educational side of The Banneker Model? Is this philanthropic side of the model feasible?

   Banneker should go ahead in developing the philanthropic side of Banneker Model despite the current uncertainties of the whole Model. Although there is a trending decline in net income of Banneker’s which had gone below 20,000 U.S. Dollars by the year 2004 this model is still feasible in the future since the business has made capital investments which will increase the profits in the future.

   5. Should Banneker expand to satellite sites and not use The Banneker Model?

   Banneker should stick to its Model, since each part of the Model would rely on the other. For instance, the satellite sites could be used to train and develop a workforce that is skilled in supply chain management services. The model would also enhance the business to promote its initial plan of helping the underprivileged in the society as well as assist in opening underserved markets and tapping into a workforce that was not being well utilized to grow its business in different areas. The satellites sites profits would also be utilized making the whole Model to function properly and safeguard the future of the business.