Case Study on “Solar Feeder for Strategic Management

There are three key issues that are present at SKS Manufacturing that need to be systematically tackled in order for stabilization of the business to occur and the long-term redesigning process to be effective. The key issues facing SKS Manufacturing are: (1) cash flow shortage (2) weak alignment and integration within the value chain and (3)

The company is looking to increase profitability and find a long-term solution to the inventory problem.

The company believes that new initiatives are necessary to bolster unit volume and especially reorders. I believe Advanced Materials lacks coherent strategy for Nundies to effectively appraise the financial worth of product service offerings. The managers must reduce the spending on order getting costs because they cannot increase their output to the capped limit of 100,000 liners. Other issues are whether or not the distribution approach currently used by the company will help reach profitability, and whether or not the company effectively reaches the target market.

the company. First of all, the company is unable to generate a sufficient amount of sales. The

Lastly, the company suggest to expand their current inventory through increasing production and capacity. With the increase in production rate the company can gain more consumers as a whole through supply and demand. Doing this would give the company an opportunity for more exposure and perhaps better brand recognition.

Ed Welsh and Bo Haeberle discovered an idea of the solar feeder. After years of developing, the product became very successful. It even won several prizes like the best new product in the Bird Watch America trade show, the national birding convention. After this, Ed and Bo decided to sell their final product under new established company Squirrel Defense, Inc. They opened a small shop in Greensboro and begin the production of the solar feeder so they could take orders for the demanded product. Owners spent too much money and time on developing the product and now, their expectations are high because they have an advantage of unique product and even the investors showed interest in the company.

Without efficient resource allocation & lack of communication between R&D and Brands, the conflict between departments generated in following steps. Even more, each steps make overall inefficient resource management.

The two divisions were often on different pages and experienced communication challenges. This created several pricing difficulties making it even harder to globally market the products. To further the problem, the ID felt as though their R&D received less than sufficient manufacturing resources, which limited the ability to forecast the global market.

owners have found that demand for their product has outstripped their ability to supply it. They

They are facing difficulty in logistics and procurement restricted to imports from Taiwan. Sometimes, they are also have marketing budget of their products during their promotion.

After closely reviewing the financial and production data, our accounting team has found that your traditional cost allocation is faulty and misleading. The costs of products A and C were over allocated and products B and D were under allocated causing deceptive information on the true profits of the company. Also, product B appears to be

Also, the drug distribution division has been forced to lower its prices by health care providers, patients, insurance companies and HMOs. Moreover, related costs are increasing, reducing profit margins of the company. This division is not as profitable as other three divisions, generating less than 50% of the company’s total profits,

Our competitive advantage is that high quality of product, lower cost of solar panel, installation and maintenance, unique financial payment option and total coverage on-stop service, making it more reliable and convenient for customers than any other solar panel companies.

3. Determinants of its Product stewardship: highlight the predominance of any of the determinants as cost, quality, delivery, flexibility, innovation, technology, value, resource utilization, or any other to have provided the company competitive advantage

Once they analysed what were the main issues that led the company into that situation, two were the main problems. First of all, the product portfolio was unprofitable, more than the 94% (Breen 2013).