Premium Essay

Appliance Maker the Challenge

In: Business and Management

Submitted By amitshri0073
Words 1246
Pages 5
Case 1: Appliance maker
The challenge
Senior executives at a large, low-cost manufacturer of appliances and white goods were concerned about the sluggish performance of the company’s household fan business. It had long been among the top leading players in the company’s home country—an emerging market—but was now losing domestic share in two important, and fiercely competitive, product categories.
The company’s leaders suspected that a stagnant product portfolio was partly to blame; they had been focusing a considerable amount of attention on operations and had neglected to revisit fan designs for a couple of years. Meanwhile, an innovative upstart, also from an emerging market, had begun competing with the manufacturer, both at home and in developed markets. The threat served as a wake-up call: establishing a stronger platform for growth, the executives realized, would require the company to step up its product-development capabilities while maintaining—or even improving upon—its low-cost edge.
Case 2: Medical-capital-equipment maker
The challenge
A large manufacturer of medical devices and capital equipment was losing market share to an Asian-based entrant offering lower prices for a key product. The manufacturer’s R&D team was perplexed. By its estimates, the competitor’s costs to make the product should be about 20 to 25 percent higher than the company’s costs for its own product. A head-to-head comparison of product characteristics clearly indicated that the attacker’s was inferior on many dimensions, including quality. The consensus of the R&D group was to stay the course—the competitor, they grumbled, was selling below cost to grab market share and would eventually have to raise its prices.
Skeptical company leaders decided to investigate further. Many of the R&D team’s key personnel were longtime company veterans who had been instrumental…...

Similar Documents

Premium Essay

It Challenges

...meeting established performance standards. Then appropriate system activities must be adjusted so that proper information products are produced for end users. For example, a manager may discover that subtotals of sales amounts in a sales report do not add up to total sales. This might mean that data entry or processing procedures need to be corrected. Then changes would have to be made to ensure that all sales transactions would be properly captured and processed by a sales information system. 50 Management Information Systems 2010/2011 Lecture … (5) The Challenge of Information Systems: Key Management Issues Although information technology is advancing at a blinding pace, there is nothing easy or mechanical about building and using information systems. There are five major challenges confronting managers: 1. The information systems investment challenge: It is obvious that one of the greatest challenges facing managers today is ensuring that their companies do indeed obtain meaningful returns on the money they spend on information systems. It’s one thing to use information technology to design, produce, deliver, and maintain new products. It’s another thing to make money doing it. How can organizations obtain a sizable payoff from their investment in information systems? How can management ensure that information systems contribute to corporate value? Senior management can be expected to ask these questions: How can we evaluate our information systems......

Words: 2379 - Pages: 10

Premium Essay


...Learning a language that is not your native one is a challenge. This challenge is doubled when you are learning it from a adviser who is also a non-native speaker of the language that you are trying to learn.The afore cited challenge comes from the fact that both the teacher and the student think in their native language, then mentally make translations of their thoughts and try to communicate to each other in a language which is alien to them. That language is English in this particular instance. On the other hand ,there is also that challenge of enhancing ones speaking,listening, reading and writing skills in English. Speaking is the skill or ability to communicate in English orally; listening is the skill or ability to process the information received; reading is the skill or ability to place and derive meaning from the printed page; writing is a skill of putting one's ideas on paper. Mastery or achieving facility in all the aforementioned aspect of the English language is challenging indeed. It requires practice. Lots and lots of practice. In addition, it also requires dedication and effort. One has to work hard to learn anything. The same is true in learning a second language. There are approaches or means of learning English as a second language. The first approach is by knowing that learning English or any second language, for that matter, consists more of the acquisition of a set of habits, rather than an intellectual mastery of the technical aspect of English......

Words: 294 - Pages: 2

Premium Essay

Guitar Maker

...CASE STUDY 1 : GUITAR MAKER 1. Which of Fayol’s 14 universal principals of management in Table 2.1 are evident in C.F. Martin case? Explain your reasoning for each principle selected. In the C.F. Martin & Company case study several of Fayol’s universal principles of management are present as a result of Chris’ attendance in a week long course entitled “Outward Bound”. The first principle that is evident is that of “Division of Work” realizing that the redirection of certain employees from the core business to assist failing acquisitions was causing a distraction. Secondly, is “Unity of Command” citing a traditional top-down hierarchical chain of command whereby the employee receives his work orders from his boss. Next, is “ Stability and Tenure of Personnel” as every worker was given formal training which resulted in the “Initiative” of employee profit sharing. Lastly, but certainly not less importantly, is the principle of “Esprit de Corps” that proved most successful with Chris realizing that value of teamwork. 2. What would Mary Parker Follett probably say about Chris Martin’s management style? Explain. I believe that Mary Parker Follett would applaud Chris Martin’s managerial style as he came to embrace “ each employee as a complex collection of emotions, beliefs, attitudes and habits” (Kreitner & Cassidy, 2012) and as a result Chris was able to motivate his staff’s performance through cooperation and a spirit of unity. 3. Is Chris Martin a Theory X or Theory Y......

Words: 568 - Pages: 3

Premium Essay

Wrencroft Appliance Company

...WRENCROFT APPLIANCE COMPANY PROBLEM In 1989, Auditors of Wrencroft Appliance Company (WAC) proposed two different inventory write-downs regarding a discontinued microwave product and spare parts to the company’s audit committee. John Moore, WPC‘s CFO, is in the position to make recommendations to the board regarding the proposed adjustments. He needs to make a careful evaluation of whether the proposed inventory write-downs are necessary for the independent accountants to render unqualified opinion. In order to make sound recommendations to audit committee, John should analyze on the following matters. 1.) Are the reflected amounts in the proposed write-downs based on reasonable estimates? 2.) Is there a sufficient evidence for either write-downs to justify corresponding tax deductions? ANALYSIS Inventory valuation & Estimates for proposed write-downs Discontinued Microwave WPC’s auditor used Lower of Cost or Market (LCM) method as basis for inventory valuation in the proposal given. The discontinued microwave oven was proposed to be adjusted to 40% of the finished goods inventory of 1988 due to the anticipation of selling the units to a large discount chain with an agreement to receive 40% of the cost of the microwaves, while the spare parts manufactured for the microwaves should be disposed of at 5% scrap value. The necessity to write down this bulk of inventory favors tax deduction for the company’s advantage. However the case did not imply that......

Words: 1448 - Pages: 6

Premium Essay

Challenges to Criminal Law Makers

...Challenges to Criminal Law Making in the New Global Information Society: A Critical Comparative Study of the Adequacies of Computer-Related Criminal Legislation in the United States, the United Kingdom and Singapore Warren B. Chik* Introduction Computer and Internet usage is on the rise due to lower costs of computer ownership and connectivity as well as faster and easier accessibility. As it is another mode of commercial and personal transaction and one that is heavily dependent on interaction through computers and automatic agents rather than face-to-face meetings, which increases distance and allows anonymity, it is another avenue for crimes to perpetuate. “Computer Crime” encompasses crimes committed against the computer, the materials contained therein such as software and data, and its uses as a processing tool. These include hacking, denial of service attacks, unauthorized use of services and cyber vandalism. “Cyber Crime” describes criminal activities committed through the use of electronic communications media. One of the greatest concerns is with regard to cyber-fraud and identity theft through such methods as phishing, pharming, spoofing and through the abuse of online surveillance technology. There are also many other forms of criminal behaviour perpetrated through the use of information technology such as harassment, defamation, pornography, cyber terrorism, industrial espionage and some regulatory offences. The existing criminal laws in most......

Words: 24175 - Pages: 97

Free Essay

Home Appliance Manufacturer Industry

...Executive Summary The Household Appliance Manufacturing industry felt the pressure in the past five years to 2012 due to the effects of the changing real estate market. Like most producers of household goods, appliance manufacturers watched demand grow during the real estate surge through 2006 and then watched it decline when the housing market weakened. As consumers move into new homes, they will more than likely purchase new appliances. Therefore, activity in the residential real estate market directly affects household appliance manufacturers. As a result of the subprime crisis and housing market collapse, industry revenue has declined at an estimated average annual rate of 6.3% to $15.2 billion in the five years to 2012. Introduction The household appliance industry is an innovative industry depending upon the ever changing market. We take into consideration the five environs of a situation analysis including: competitive, political, social, cultural and economical environment to assess the nature of the industry presently and to predict the direction of the market. We need these set of environs to effectively conduct a long term marketing plan for a company that is thriving in this industry. We will attempt to outline the industry overview, competitive landscape and the products, operation, & technology to further conduct our analysis in a detailed scope of the market. Our perspective will be reflected in our outlined short and long term strategic......

Words: 8726 - Pages: 35

Free Essay


...Meeting Human Services Challenges with Technology Challenge #2 Your nonprofit has the tools to provide great service to the community, but people aren’t aware of what you do. Solution Working in the field of human services the most important factor is reaching the population of people who you are trying to serve. Most nonprofit agencies have the tools to provide outstanding service to the community. The challenges they are faced with is the proper resources to continue doing the outstanding work in the community. Some of the challenges are receiving a grant to support the nonprofit agency in the community. By solving this problem we would apply for a government grant and write out a proposal explaining the direr need for this grant and how beneficial it would be for our agency. By applying for this grant it will help our nonprofit organization carry on by providing great service in the community properly and uninterrupted. By solving this problem and receiving the funds we as an agency can employ the staff we need to do groundbreaking work in the community, by helping others overcome, adversity, homelessness, financial situations, and so much more. The grant will allow the agency to do outreach via internet (social networks), flyers, and that will strengthen the communication tools in reaching the public. Challenge #7 Your organization provides the link between homeless men and women willing to perform work and people needing day labor services. But tracking the...

Words: 1145 - Pages: 5

Free Essay

Myth Maker

...divisiveness is exorcised as Mr. Modi talks of fighting poverty as a dream of South Asian Association for Regional Cooperation (SAARC) nations. He dreams of a neighbourhood of developing nations, a dream of non-violence, where a nation state returns to its sources in a civilisation. It is a perfect performance, crafted in ease, delivered with confidence. A nation, proud as an elite, looks puzzled. This man is not a new entrant to power, he is rewriting Delhi. As a semiotic act, it is difficult to beat. The success is almost matter-of-fact. Lutyens’ Delhi smells a new regime as India senses the new era. Looking back, if politics is performance, the Oscar goes to Mr. Modi. Even Bollywood could not have done it better. India has discovered a new myth maker....

Words: 1429 - Pages: 6

Premium Essay

Toy Maker

...Big Time Toy Maker 1. At what point, if ever, did the parties have a contract? In the theory of practice, big time toy maker, the parties involved did not have a contract. In the scenario it stated that the parties had reached an agreement 3 days prior to the end of the 90 day deadline, which was set in the negotiation period.” The exclusive negotiation agreement stipulated that no distribution contract existed unless it was in writing. Just three days before the expiration of the 90-day period”. (Melvin, 2011,). If there is no legal binding and no signature, then there is no contract. 2. Some facts weigh in favor or against Chou in terms of the parties’ objective intent to contract are • The board games were already paid out by BTT, which was $25K for the exclusive negotiation rights. This helps Chou to believe that the company had intent in arriving at a distribution agreement • An oral agreement meeting with a follow-up e-mail from the BTT manager on the key agreement. • A Fax from BTT requesting a draft for a distribution agreement contract agreement and Chou responded immediately Facts that weigh against Chou are: • The negotiation statement stated that no contract exists unless it is in writing there was no signature to bind the contract. • The 90-day deadline passed with only an oral agreement • The word “contract” has left off the e-mail received from the BTT manager • Chou failed to draft a distribution agreement contract......

Words: 1260 - Pages: 6

Premium Essay

Star Appliance

...Star Appliance Case Study Star Appliance is looking to expand their product line and is considering three different projects: dishwashers, garbage disposals, and trash compactors. We want to determine which project would be worth doing by determining if they will add value to Star. Thus, the projects that will add the most value to Star Appliance will be worth pursuing. The current hurdle rate of 10% should be re-evaluated by finding the weighted average cost of capital (WACC). Then by forecasting the cash flows of each project and discounting them by the WACC to find the net present value, or by solving for the internal rate of return, we should be able to see which projects Star should undertake.  Conclusion:  After calculating the NPV and the IRR for each project, I have determined that both the dishwasher and the trash compactor projects should be pursued. Both of them have shown positive NPVs at the new discount rate of 11.58% (WACC). Both projects also yielded IRRs greater than the given hurdle rate. The disposal did not meet these requirements and therefore should not be undertaken.  Based on the optimal capital structure analysis, they should pursue as 70% debt proportion, which will give them the lowest cost of capital at 11.58%. Currently Star has no debt in their capital structure, so these new projects should begin to add debt to the company. However, no matter what debt and equity proportions are chosen for each project, the discount rate of 11.58% should...

Words: 1747 - Pages: 7

Free Essay


...Life is full of challenges, I try to overcome them with a positive approach because you have to tackle your challenges to achieve success. When I was in high school at 11th grade, I was selected to represent my school in a debate competition. The chairman gave the topic of the debate to my co-debater two weeks prior to the debate. The date for the debate was not announce and I was waiting for the topic from the chairman but he forgot to give me the topic. So the announcement was made a day prior to the debate and I was shock because I haven’t prepared anything. I try calling the chairman but his phone was switch off. On the day of the debate, I went to the chairman to ask him about the topic, he was surprise to realize that he didn’t give me the topic. He apologizes to me and he told me that I will not be able to make it because its three hours more for the debate to begin. He gave me two options. First, he told me to give up and the award will be given to my co. debater and he will inform everybody about what happen. Second, he said if I think I can still make it, it’s ok. At that moment I was totally confuse and nervous because I have not prepared anything and there are high hopes on me. Then, I said to myself nothing is impossible, I will face this challenge...

Words: 253 - Pages: 2

Free Essay

Home Appliances in Bangalore

...Home appliances is a term that is used very popularly in recent times but what does it stand for? home equipment stand for the mechanical and electric products that are used at home for the functioning of a ordinary family. The home appliances are stuffs that are used to for cooking, cleansing, washing, laundry and numerous special functions which are done in each home. How ever all domestic device used for the strolling of the family can't be added beneath one umbrella head of 'domestic gadget for even this class may be divided in to 2 extensive agencies- the small home appliances and essential home equipment. Home appliances have a totally important function in our each day lives. Because of the fact we were surrounded through masses of home system which act as a supporting hand in our day by day ordinary. for many human beings it isn't always fine a place for meals guidance however an area many humans socialize and do distinct obligations collectively with garments washing in. those consist of the most vital elements of a kitchen. Additionally a high-quality initiative for the consumer is the bargain on those kitchen device applications if purchase together. An top notch package which includes all the vital kitchen home equipment is the nice deal you could get. A few companies and extraordinary dealers provide this facility. The presence of many outstanding kitchen home equipment manufacturers is a boon for the purchaser because the competition among brands gives......

Words: 915 - Pages: 4

Premium Essay

Blackberry Maker

...time (, 2010). References (2010). Research in Motion to Acquire QNX Software Unit from Harman International. Retrieved on 22 January 2012. (2010). Palm Inc. amp Research In Motion Limited. Retrieved on 22 January 2012. Elsa, L. & Green, J. (2006).RIM in the mobile enterprise market. Lendino, J. (2009). "Research in Motion Acquires Dash Navigation | News & Opinion". Retrieved on January 22, 2012.,2817,2348281,00.asp. Tricia, D. (2010). RIM Acquires Blackberry-App Maker Viigo. Retrieved on 23 January, 2012.

Words: 1516 - Pages: 7

Premium Essay

Clearwater Small Appliances Inc.

...Memo To: Management Committee From: Student, Vice President Controller Date: June 6, 2012 Subject: Maintain Current Business Process vs. Modify Internal Business Process Dear Professor, As per your request, attached is the report that we have prepared, outlining the course of action Clearwater Small Appliances management team should adopt in designing and planning for the operation, given the opportunities and constraints faced at present. This report gives a complete analysis of the situation and different alternatives available, followed by a final recommendation using our criteria. Please let us know should you have any questions or require further clarifications on this report. Yours truly, Student, Vice President Controller of Clearwater Small Appliances Introduction and Problem Statement Clearwater is a small appliance manufacturer that has been in existence for approximately 50 years. The company produces a large spectrum of small household appliances such as coffee makers, toaster ovens, microwaves and irons. Recent changes to the retailing industry by “power retailers” have required Clearwater to alter its way of doing business. The board of directors have developed a new strategy to become a profitable supplier to “power retailers” but do not have the means to monitor and evaluate the success or failure of the strategy. Issues 1. Clearwater is suffering from declining sales. Category retailers have become......

Words: 2119 - Pages: 9

Premium Essay

Man - the Maker and Breaker

...Man – the maker and breaker Through out history man has used his intelligence to create a lot of good but also caused a lot of destruction in the progress. The human brain has come up with inventions that have improved peoples lives tremendously and made possible the current way of living. Pharmaceuticals and medical science in general is a great example of what good can come from inventions but on the other hand people have also used their knowledge to hurt each other and themselves. The United States spent hundreds of billions of dollars on war every year. Countries have invested in weapon technology in the 1900s and even earlier so this isn't a new phenomenon. For some reason people feel the need to develop more advanced ways to kill one another when they could spent that time to think of ways to help each other People in Japan are still suffering of the effects of the atomic bomb dropped there at the end of the Second World War. Also a fundamental part of modern society is harnessing of fossil fuels to power for example cars and other means of transportation. The use of them, however, isn't that great for the environment since it pollutes the air and has caused this little problem called global warming. Nowadays people have started to pay attention to CO2 emissions etc. and are trying to find more “green” sources of energy. Nuclear power is one of the main sources of energy and if you wish to see the downsides of utilizing it you should google Chernobyl – or......

Words: 317 - Pages: 2