Richardson Manufacturing Company
1. After a close analysis of the Richardson Manufacturing Company, Inc., various strengths and weaknesses can be identified. Over the last four years, Richardson has experienced an 11% cumulative growth rate, taking into account the impact of previous sales or performance on the each year's growth on sales. The bulk of growth was between 1998 and 1999, which was well above average at 19.6%. This observation indicates that the domestic market has been strong for Richardson.
When deciding whether or not to consider going international to Australia, several factors can be taken into consideration. First of all, because Richardson only holds 2% of the domestic market share, they may wish to concentrate on continuous growth in sales within the United States (domestic) and continue to postpone entering Australia's market until after the domestic market in the United States is saturated. However, one cannot ignore the fact that Richardson's ending inventory has been decreasing every year by an overall average of 10%, especially in the year 2000 where ending inventory dropped 28.2%. This decreasing movement of ending inventory represents a move toward efficiency for Richardson. This efficiency is exhibited by the cost of goods sold, which has experienced an average growth of 6% over the past six years of operations. In turn, the growth of profit in manufacturing has grown by 16% each year. This observation attests that the market in the United States has been profitable and encourages manufacturing efficiency. Because of this growth and sales profitability, competition may be invited into the United States market, forcing Richardson to go international in order to keep a lower profile on its domestic...
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...ng Richardson's product while assuming financial responsibilities for shipping and manufacturing costs, in addition to providing Richardson with a favorable amount of profit, Richardson should follow this strategy if capacity allows. By doing so, the demand for manufacturing Richardson's product will be more continuous and stable throughout the year, since the Australian seasons are counter-cyclical to that of the United States. However, before implementing this strategy, the forecasted profits from this decision should be compared to those of a direct foreign-investment strategy. Because of the decline in total assets, Richardson may choose to put off direct foreign-investment until they have ensured the demand and profitability propounded by the Australian market while developing a larger amount of invested capital to ensure stability and longevity in the company.
Based on the textbook and my understanding, whenever there are negotiations between a procurer and a supplier regarding a competitive bidding, the first thing that might be favored is the scope of the project, meaning both will sit down and discuss the entire project prior the work begins. Meanwhile, during the negotiations, evaluation criteria should be clear, and stated and defined. As the evaluation is based on the criteria stated and the procurer can request or ask the supplier’s opinions on certain specifications and where things can be improved.
• A more competitive, efficient and profitable business with less competition in the domestic markets.
Another key driver for resurgence of U.S. manufacturing is supply chain innovation and according to a survey by Supply Chain Digest of 340 supply chain manager in 2012 showed an important decision driver for off-shore manufacturing is speed to market. In order to reduce the time of product to market corporates leaders are locating manufacturing facilities in U.S. which enhances the ability to understand customer requirements and react quickly throughout the entire value chain when requirements change hence favor production that is slated for U.S. consumption (Ludwig & Spiegel,
For much of its century long history, Nucor Corporation and its predecessors displayed turbulent performance. Several attempts at strategic and leadership realignment proved unsuccessful, and in 1965, the company faced insolvency. Since that time, however, the company has rallied around its steel operations to become the largest steel producer in the United States, with $4.3 billion in net annual sales. This case examines Nucor's development from an unprofitable conglomerate to a highly efficient enterprise. Specific focus on the evolution of the activity system underlying the organization lays the groundwork for systematic analysis of why some companies succeed while others fail.
Maximize the interaction with in the group to facilitate unity of the three individual groups (management and workloads)
BHP Billiton is the most successful company throughout the world by using unchanged strategies in their business. They have a strategy to operate large, low cost, expandable, and upstream commodities by using raw materials, geography, different assets and market, which give them a superior marginal costs throughout economic and commodity cycles for several years. They put the security of their workers first and supporting them by providing various facilities (see appendix 1). Their diversification makes the easy cash flow system by reducing the exposure to any one commodity and give for more identifiable and great financial performances. To become more successful BHP have heaps of human resources or workforce which reflect their values and communities. They have aim to recruit and attract other people who make their organization successful and thrive on working in teams and going to their extra miles to give their best. Moreover, they are committed to meet the changing needs of their customers. They have world class portfolio of growth option that will make them able to plan for a short term and long term goals and continuing them to create value for their shareholders which BHP more powerful (BHP Billiton, 2014). By using these all measures BHP Billiton kept its solid position in the nine month period till the end of March 2014 with the record of production attained for four items and at 10 operations. In aggregate, processing expanded by 10% for throughout the period what's more is required to develop by 16% over the two years to the end of the 2015 fiscal year. For further development BHP having a plan to start new projects where they pursuing a higher rate of returns on incremental investment and increasing inter...
Adding to overseas sourcing so that lead time could be faster for design and production they could also divide the business up and have different locations for orders and new products to make business faster and
While analyzing the data for The Body Shop International case, I noticed some trends and have compiled my assumptions for the next three years. I have compiled pro-forma statements for the fiscal years 2002, 2003 & 2004. These figures are based on the percentage of sales method for pro-forma financial modeling. Simply put, I used the sales figures from the past three years 1999, 2000 & 2001 and applied a growth rate of 13% increase to sales. Below are some additional assumptions that I have created to illustrate how the firm can become profitable while increasing market share and maintaining stockholder interest within the firm over the next three years.
Signode Industries Inc. - Providing Packaging Solutions Executive Summary SIGNODE INDUSTRY: DILEMMA AT HAND: Mr. Gary Reed, President of Signode Industries packaging division, is in a dilemma as what he should be his course of action to meet the 6.8% increase in price of cold rolled steel- the raw material used in manufacture of Signode’s primary product, steel strapping. There are few options given in the case: Increase Signode’s strapping prices to offset the increased price of cold – rolled steel. Maintain Signode’s current book prices as increasing prices would affect sales force morale. Introduce price-flex model as proposed by Jack Davis i.e. a kind of selective discounting or premium charging for customized services. Recommendations Reason: (All data in accordance to 1983) In accordance to Exhibit 1: Sales of Packaging Division of the company = $285,950 In accordance to Table A: Sales of Apex = 33.3% of $285,950 Sales of BBM = 26.8% of $285,950 Sales of HDM = 33.4% of $285,950 Sales of Customized Products = 6.5% of $285,950 In accordance to Exhibit 4: Similarly, For Apex: As it has a capacity utilization of 71% now, Suppose a sale is $100. Then contribution is $39.15 Therefore variable cost is $60.85. Now if we increase the capacity utilization to 100%, Sales becomes $ 141 since production increases by [(100-71)/71] * 100 = 41% Variable Cost = 141% of 60.85 = $85.8 Fixed Cost = 69.38% * 12.3 = $8.53 Total Cost = 85.8+8.53 = $94.33 EBIT = Sales – Variable cost – Fixed Cost = $46.67 % of EBIT = [(46.67/141) * 100] = 33.09% Suppose the company sales 100x units, the total cost was 69.38. Thus per unit cost was .6938. Now the company sells 141x units, the total cost...
The current circumstances have made us re-think about the governance of our company. To resolve certain issues like spread of our businesses, incompetent management, improper structure and high attrition rate has been addressed here. The strategic options evaluated are Divesting from some of the businesses, Re structuring the management by giving generalised top management or using specialized management. The options are evaluated on the basis of cash position, future projection, Repute preservation and efficient functioning of management. On the basis of these, I recommend to divest from irrelevant and non-performing businesses. This will ensure company’s smooth running and sustained profitability.
... organizational structure that needs to be maintained for its operations in Australia. As the suggestion has been of total ownership thus span of control is needed and these factors have been discussed in this report to illustrate how effective the organization can be in Australia.
Products are not standardized and vary by country in terms of type, packaging and specification. This increases production time, production costs, lead tim...
withstanding a large recession, and commanding high market share. In the last five years, the company’s
The second way is to achieve low direct and indirect operating costs is gained by offering high volumes of standard products and offering basic no-frills products. Production costs are kept low by using less parts and using standard components. Limiting the number of models produced to ensure larger producti...
2. What is the difference between a.. We noted that SSM Health Care learned from manufacturing companies in their quality journey. What can nonmanufacturing companies learn and apply from Toyota’s philosophy and practices? Suggest specific things that education and government might learn.