Conclusions and Recommendations of a Study Involving HP Motors Essay

Conclusions and Recommendations of a Study Involving HP Motors Essay

Length: 967 words (2.8 double-spaced pages)

Rating: Better Essays

Open Document

Essay Preview

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...

... middle of paper ...

...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.

Need Writing Help?

Get feedback on grammar, clarity, concision and logic instantly.

Check your paper »

Discussion, Conclusions, And Recommendations Essay

- Discussion, Conclusions, and Recommendations Recent data provided by the Federal Bureau of Investigations indicates that there were an estimated, 1,165,383 violent crimes committed nationwide in 2014 (FBI, 2015). According to the average statistics presented early on in this research, 25-45 percent of those offenders are likely to have claimed amnesia for their crime. Based on those percentages, between 290,000 and 524,000 violent offenders attempted to exploit the inexplicit protocols, and classifications forensic psychologists’ have left undetermined for genuine versus simulated amnesia....   [tags: Crime, Violent crime, Memory, Criminology]

Better Essays
812 words (2.3 pages)

Case Study : General Motors Company Essay

- General Motors Company is one of the largest automobile makers in the world, with its headquarters based in the United States. After a few years of financial troubles, on November 18, 2010, General motors company (GM) announced the start of a new chapter in its history; a chapter that envisioned the emergence of a solid financial foundation within the company. The solid financial future according to then GM home page would enable the company to produce great vehicles for their customers and build a bright future for employees, partners and shareholders (“General Motors,” n.d.)....   [tags: General Motors, Automotive industry, Opel]

Better Essays
706 words (2 pages)

Recommendations and Conclusion for Curls & Co Essay

- Conclusions Eshwar Dhap is a well experienced business woman who is well aware of both the pros and cons of the business. She has been in the same business for last 18 years. She managed to run her first business successfully with reasonable profit. Her success was based on number of factors involving good economy and less competition in the area. Eshwar is well aware of her weak points, her lack of interest and her future prospects to survive in the business without making some major changes on many fronts are looking grim....   [tags: Business Analysis ]

Better Essays
1765 words (5 pages)

Conclusion And Recommendations Of Primark Essay

- Chapter 6 Conclusion and Recommendations 6.1 INTRODUCTION Conclusion and proposal are discussed in this part. Conclusion is given to find principal answers for meet investigation objectives. Each investigation objective can be truly tended to by using research conclusion. Proposals are in like manner given to improve future standard constrained time strategies of Primark to propel their arrangements. Organization of Primark would have the ability to make intense standard restricted time frameworks and change existing periodic extraordinary systems with the sponsorship of rational proposition....   [tags: Customer, Customer service, Sales, Thing]

Better Essays
722 words (2.1 pages)

Letter of Recommendation for Alejandra Galaviz Essay

- It is a great honor to write a letter of recommendation for Alejandra Galaviz. I have known Alejandra for three years in an academic setting. She was one of my finest Spanish students three years ago and she always motivated other students to succeed as well. She has been my most trusted teacher’s assistant for the last two years. She is one of the most mature, helpful, reliable and trustworthy students I have taught in my 12 years of public teaching. As a public high school teacher, I have seen hundreds of students walk in and out of my classroom over the last 12 years, and Alejandra is in the top 1% of students who have had a positive impact on me....   [tags: Recommendation]

Better Essays
848 words (2.4 pages)

Essay about Tesla Motors Case Analysis : Tesla

- Portfolio Project: Tesla Motors Case Study Tesla Motors (Tesla), founded in 2003 by Elon Musk, is an automotive company focused on enhancing Electric Vehicle market by creating optimum performance, all electric, vehicles for every class of consumer (Tesla Motors, 2015). In order to achieve such ambitious goals, Tesla Motors not only designs, but also manufactures, and personally sells the company’s electric vehicles (Hirsch, 2015). As additional quality assurance, Tesla Motors also designs, manufactures, and sells, electric vehicle power-train components, and battery products (Hirsch, 2015)....   [tags: Tesla Motors, Tesla Roadster, Electric car]

Better Essays
1827 words (5.2 pages)

Electricity is Used in Motors, Not Just in Light Bulbs Essay

- Electricity is not only used to turn on lights, or make things work, it's also being used in automobiles and other motor-run things. Electric motors also conserve energy and isn't as harmful as a diesel engine or motor engine. Electric motors date back all the way in the 1800's when Thomas Davenport built the first real working electric motor. He used a spinning wheel technique and levers that move back and forth repeatedly. His work ended up being used to move trolleys, but not till 50 years after his death....   [tags: AC and DC motors, electric power]

Better Essays
809 words (2.3 pages)

The History Of General Motors Essay

- It can be argued that General Motors (GM) use of technology is what changed them from a reputation of polluting the environment with toxic waste into a new eco-friendly sustainable automobile company. Technology can come in many shapes and forms. “Technology is the combination of skills, knowledge, abilities, techniques, materials, machines, computers, tools, and other equipment that people use to convert or change raw materials, problems, and new ideas into valuable goods and services.” (Jones, 2013, p....   [tags: General Motors]

Better Essays
1365 words (3.9 pages)

Essay on Keyboarding Software Packages: Analysis and Purchase Recommendation

- Keyboarding Software Packages: Analysis and Purchase Recommendation TABLE OF CONTENTS I. INTRODUCTION A. Purpose and Scope B. Procedures II. FINDINGS A. Overview of Software Being Evaluated B. Evaluation of Software 1. Based on Cost 2. Based on Ease of Use 3. Based on Feature Set 4. Based on Help and Support 5. Based on Supported Configurations III. SUMMARY, CONCLUSIONS, AND RECOMMENDATIONS A. Summary of the Problems and Procedures B. Summary of the Findings C. Conclusions and Recommendations INTRODUCTION Every company needs to ensure that it is receiving the utmost in productivity from its employees....   [tags: Software Recommendation]

Better Essays
1161 words (3.3 pages)

Businesss Study Recommendations for Network Upgrade Essay

- Businesss Study Recommendations for Network Upgrade Background Mr. D the Chief Information Officer of M Computing has put the brilliant Information Technology department in charge of setting up a computer network for the company. The I.T. department must research the different options to come up with the most efficient decision for the network. The team must keep each system within the budget of $2700 and $3400 per user platform. Some of the problems the team may run into are listed below. · Different departments will require different systems....   [tags: Papers]

Better Essays
1267 words (3.6 pages)