Product details

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Abstract

Yellow was set up in the 1920s to provide bus and taxi services in Oklahoma. Very soon, the company realised that freight shipping was a more lucrative business and divested its taxi business to operate full-time in transporting freight. After the trucking industry was deregulated by the US Congress in 1980, the company found itself unequipped to deal with the increased competition and a dynamic industrial environment. It also had a narrow view of what its business was, and did not give due importance to the broader area of service. Consequently, its performance began to decline. In the mid-1990s, the company began restructuring its operations to improve performance. It made efforts to improve customer service by providing more flexibility and better quality of service. In its restructuring efforts, the company made extensive use of technology. It developed most of the applications in-house, which helped it accelerate the assimilation of technology and also provided cost advantages. The effective use of technology helped Yellow become one of the leaders in the US transportation industry by the early 2000s. The case is designed to help students: (1) understand the problems faced by a mature transportation company due to a change in the dynamics of the industry in which it operated; (2) analyse the steps taken by the company to re-establish itself as an industry leader; (3) appreciate the role played by technology in helping a company gear itself to meet the needs of a new business environment; (4) understand the importance of integrating technology into a company''s processes; (5) examine the operational implications of a choice between making and buying a production component, in this case, new technological applications. The case is meant for MBA/PGDBM students as part of the production and operations management curriculum.
Location:
Industry:
Size:
Large
Other setting(s):
1996-2003

About

Abstract

Yellow was set up in the 1920s to provide bus and taxi services in Oklahoma. Very soon, the company realised that freight shipping was a more lucrative business and divested its taxi business to operate full-time in transporting freight. After the trucking industry was deregulated by the US Congress in 1980, the company found itself unequipped to deal with the increased competition and a dynamic industrial environment. It also had a narrow view of what its business was, and did not give due importance to the broader area of service. Consequently, its performance began to decline. In the mid-1990s, the company began restructuring its operations to improve performance. It made efforts to improve customer service by providing more flexibility and better quality of service. In its restructuring efforts, the company made extensive use of technology. It developed most of the applications in-house, which helped it accelerate the assimilation of technology and also provided cost advantages. The effective use of technology helped Yellow become one of the leaders in the US transportation industry by the early 2000s. The case is designed to help students: (1) understand the problems faced by a mature transportation company due to a change in the dynamics of the industry in which it operated; (2) analyse the steps taken by the company to re-establish itself as an industry leader; (3) appreciate the role played by technology in helping a company gear itself to meet the needs of a new business environment; (4) understand the importance of integrating technology into a company''s processes; (5) examine the operational implications of a choice between making and buying a production component, in this case, new technological applications. The case is meant for MBA/PGDBM students as part of the production and operations management curriculum.

Settings

Location:
Industry:
Size:
Large
Other setting(s):
1996-2003

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