This option was to simply reduce the price of the 10-hp motor to the price of their 7.5-hp motor. This is really the only option that can be fully implemented before the primary selling season starts. Furthermore, it could be possible to postpone the price reduction for two or three months until DMC encountered objections and the market became aware of Hamilton's endorsement of the Spartan motor.
There are a couple of issues with this option. First of all, this is only a short run solution because over time, due to the higher electric rate as well as potential penalties for over-motoring, companies would prefer to use motors that fit more accurately their power and torque needs. Finally, profitability per unit that DMC currently enjoys with 10-hp motors will drop by 66% after price reduction is in effect (see Exhibit 4). In the long run Dominion should look for a more profitable solution.
2. Reengineer DMC's present 7.5-hp motor to give it a starting torque equal to or greater than that of the Spartan 7.5-hp motor.
This option provides two methods for motor modification: the first is modifying the internal engine components of the 7.5-hp model, which would cause an increase in temperature above National Electrical Manufacturers Association (NEMA) standards, and the second is using a larger motor frame, which would exceed NEMA standards as well. On plus side, neither of these methods would involve additional investment in plant or equipment.
In terms of profitability, the original 7.5-hp motor has a profit contribution of $366 per unit. The modified internal component motor has a profit contribution of $240 per unit and the motor with the larger frame has a profit contribution of $163 per unit (see Exhibit 5). Therefore, both of t...
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...even though alternative 1 generates a low profit margin.
The analysis of the alternatives shows that the best profit margins can be achieved thanks to alternative 3. This definite purpose motor would have a large torque, have a significant price advantage over competitors’ 7.5-hp motor, and is exactly what the market wants according to the current market forecast. In addition, with the new electric power rates, it makes fiscal sense for oil companies to use a 5-hp motor over all others to save money in the long run. Also, there is a reasonable chance that the company’s market share can increase to 60% due to the competitive advantage of a definite purpose motor in the oil producing market.
It also should be noted that DMC should consider doing timely market studies to better predict new demands of the market place in order to avoid crisis situations in the future.
The purpose of this report is to compare the eight-cylinder Camaro to the six-cylinder Camaro to see which one is more ...
The Camaro was to be offered with a wide variety of powerplants, ranging from a 230 cubic inch six cylinder to a 327 V8.
In 1960, the American car landscape itself had expanded as Detroit began offering “compacts” alongside their full-size models. Many drivers, however, were looking for something in between these full size and compact model; this interest gave way to a new class, the intermediate. With many innovations between 1960 and 1964, like the 406 cubic inch V8 from Ford, the 389 from General Motors, and the wedge V8s from Chrysler, the golden age of muscle cars began in 1964. The Pontiac Tempest G...
There was always a demand for trucks with the comfort of a passenger car, or a passenger car with the load capacity of a truck. In response to this demand Ford released the Ranchero in 1957. To compete with Ford’s Ranchero, Chevrolet created the El Camino whose first release occurred in 1959. Over the years, Chevy has made several modifications to the El Camino to improve performance and style. Since Chevy stopped producing the El Camino in 1987, it has become a collectible classic. This essay will focus on several of the engine and body modifications that were made between 1957 and 1987.
The enthusiast driver has to know their machine and their own personal limits when considering these two units. Although they are very similar, turbos and blowers are also very different.
John Deere Component Works (JDCW), subdivision of John Deere and Co. was in charged specifically of the manufacturing of tractor component parts. The demand for JDCW’s products had problems due to the collapse of farmland value and commodity prices. Numerous and constant failures in JDCW’s competition for bids, alerted top management to start questioning their current costing methods. As an outcome, the analysis has to be guided to research on the current costing methods with the intention of establishing legitimacy and to help the company in adopting a more appropriate costing system.
In the future the automotive industries will need alternative fuel sources, in turn that means they will need alternative engines in their automobiles. The engines found in their cars will have to be changed to fit the new fuels being made. They have many directions in which they can go concerning engine types and fuel types.
The Ford 427 FE model engine was intentionally made for drag racing. The frame is large but,light weigh for a better performance. It weights between 120 and 195 pounds depending on the materials it is constructed of. The rear end is lifted for better air flow( super motor sports ) .The engine is present in Thunderbolt, Galaxy, and Fair lane ( ford motor Co ) This engine has the ability to reach a speed of 185 miles per hour. It also has overhead cams causing the engine to move faster. It would have cost around 10,000 dollars at the most expensive and 20,000 dollars the the lower end. Production began on the engine in the early 1960's.
Murray, Charles J. "Automakers Find New Ways To Boost Efficiency." Design News 66.2 (2011): 28-32. Academic Search Premier. Web. 26 Nov. 2011.
Another major change was in 1990 when the ZR-1 was made with 375 horsepower and a LTS5 engine under its hood. To help the appearance of the ZR-1 stand out from the standard corvette coupes, it was given all new convex rear fascia and quad rectangular taillights. All of the new corvettes were made with a new cockpit design that included digital readouts and analog gauges plus a driver’s personal air bag. Due to the redesigning of the corvette, the horsepower of the standard L98 engine was increased to 250. Shortly after this change, it under went a styling refinement that included a wrap-around ...
a) Re-engineer 71/2hp for higher torque mfg cost of $790. would be $410. per unit or a "mark up" of 52%.
...rther then the end of 2010, the introduction of the electric car is not far to come. With proper government regulations and consumer knowledge, adoptability of the electric car is possible. However, one can drastically differ in opinion as to why the required elements to support such a vehicle were not readily planned to facilitate such a change. The inadequacies draw wavering concerns for both consumers and business looking for the return of value and profit. The larger picture needs to be remembered in which oil is not a renewable resource and results in pollution and environmental hazard. Consumers and business must work together to overcome the roadblocks down the road and support each other in the introduction of and future of the electric car. Adjustments will have to be made on both sides to ensure success and minimize the society and economy disruptions.
On June 1st 2009, General Motors entered bankruptcy protection and has been fighting there way back ever since. In November of 2010, they sold a portion of their stock holdings and bought them all back by the end of 2012 allowing the company greater financial flexibility (General Motors, 2016).
Some companies now are changing their strategies according to the consumer 's desires, like GM is switched from producing 70% light trucks to producing 70% cars" despite the strong market for light trucks but America is switching to more economic commercial cars " (according to Gary Cougar GM president of north America).
One must look at the economic environment and how it will affect the launch of the product. One must look at: