It is not surprising that the plant manager describe their process as “better than anyone else” because it is guaranteed with speed and high quality, as well as reduced cost. To compete with such companies, it is important to have enough capital reserves to also engage in strategies like promotion. The paper will therefore look at how with the cost reduction strategy, the company is offered sufficient funds that were cut down from actual production cost to gain competitiveness and profitability. Firm’s competitive strategy Much of the emphasis of competitive strategy for California-Illini (CI) is placed on the ability of the company to produce high quality products at a speed that meet consumer demand and cost that meet consumer pocket. In effect, a consumer determinant strategy on demand and cost reduction is used as competitive strategy. Generally, this is a strategy that identifies the scarcity of consumers on the target market due to the number of competitors among which existing consumers may choose from (Bernanke, 2006). Knowing that the consumers are not many in number, a consumer determinant strategy generally aims at presenting the consumer with exactly what the consumer requires from the manufacturers in terms of production and cost. The question of whether the strategy used by CI seems appropriate will be answered from several perspectives. The first is to take a quick competitive analysis, based on which a question of the viability of the strategy against other competitors will be asked. Generally, CI is in the same market as other multinational horticulture companies like Simpson and Simpson Inc, and Garages Ltd. These are companies who base their competitive advantage on brand equity and high inflow of cash from other sectors of their business, making it possible for them to run expensive promotions and publicities. What is more, the strategy to add quality and speed to production is highly appropriate even that when supply from customers does not meet their demand, they would switch to other competitors. It is always important to note that the industry in which CI finds its self is one that is based primarily on seasonal production. In effect, one must not wait for seasons to pass before orders made can be honored (Fairlie, 2009). Cost reduction strategy at CI From the above, the cost reduction strategy can be said to have been generated by the need to be competitive and also increase the revenue of the company through reduced internal speeding. When calculating revenue or profit that companies like CI make, emphasis is not only placed on income but on expenditure as well. The fact that CI has been found to make an average annual sale of $13 million alone cannot be accounted in judging the company as a very profitable one. Rather, it would be important to balance this income with expenditure. Commonly, manufacturing companies like CI spend most of their expenses on the production aspect of the supply chain (Gartner, 1985). In effect, a cost reduction strategy that will ensure that production takes place at a more reduced cost always becomes beneficial. The need to be customer focused was also another motivation for opting for the cost reduction strategy. This is because when cost of production is lower, manufacturers always have the luxury of pegging the prices of their products lower because of a reduced
Title: STRATEGIC COST MANAGEMENT CASE STUDY Name: Institution: Professor: Course: Date: STRATEGIC COST MANAGEMENT CASE STUDY Introduction As human being, though companies are set up on individual basis with independent visions and goals, they are considered social entities that are obliged to behave in certain ways that are dictated by other companies (Gartner, 1985)…
At the same time, company also believes that diversification of products would help exploit the gap in the market. The company achieves its objectives through well defined policies in the each of the major functional areas as below: a. Marketing and sales Aggressive marketing and sales campaigns of the company have been one of the strongest elements of success within the industry.
This company was first set up in 1934 as Fuji Photo Film Co. Ltd. The company gradually expanded its business operations and diversified from photo film manufacturing to various other products. There are several product lines of Fujifilm and these are of technologically much advanced (Gavetti & Et.
The CEO would be acquiring competent by ensuring that the consumers accrue the outlined product benefits after every purchase and consumption of the company’s juices. Since Jamba in the past has adapted a different packaging method, it would be ideal for the company to identify the ill issues that led to the discourse and lack of the product’s success in the market.
In the 1990s it adopted the inorganic model of growth, taking over many breweries in new markets. Switching over to corporate parenting strategy in this age showed their remarkable flexibility. The takeover of Miller of USA further enhanced their reputation as a turnover specialist.
Regardless, New Balance only maintains between eight and 12 percent of the entire global market, which is insufficient for their growth requirements. There are several opportunities available for New Balance to shift its position as a follower in the sales market and emerge a leader.
Having experienced the SARS, July 7th, 2005 terrorist attack, and the Bird Flu, which have slowed down the UK economy and had an adverse effect on the hotel industry, there are now clear signs of recovery. This report will first examine the UK based Thistle Euston hotel market, discuss the main industry players and show the relative significance of key issues.
At present, the Imperial Tobacco Company is producing a large variety of cigarettes with the help of its technological innovation, which helped the company to retain their lead position in the market. "A consistent benchmarking system across the factories and are looking to develop this further, extending productivity and efficiency measures to the supply chain, logistics and distribution activities." (Imperial Tobacco).
Because of the current instability in commodity and oil prices and in interest and exchange rates, however, it has become difficult to attach an accurate value to companies. There are just too many variables and blind corners that could lead an equity valuation astray.
While analyzing the competency of the rivals of Home Depot for the year 2006, Lowe’s and Wal-Mart, which jointly shared a significant percent of US retail industry, were the two major players (Businessweek). In the home improvement industry, sales were divided among niche
The company has developed a favorable corporate image based on innovation and a high level of technological advancements. The company plans to commit a substantial amount of funds toward the acquisition of an automatic crane that replaces the old one. The central issues in
4 pages (1000 words)Case Study
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