Cj Industry

Representing costs as a percentage of sales is not the best way to judge efficiency since it can ignore variables such as bottle deposits and discounted rates, which would show problems in production when in fact there are not any. Therefore, JJ’s statement on production remains truthful when he said that CBI has been operating as efficiently, if not more, in the past. Here’s an example:

In using the ABC system, Valves and Pumps are matching the company’s target of 35% of gross margin apart from Flow Controllers. With the use of TAC, the gross margin on pump sales is 19.5% that well below the company's target gross margin of 35%. This indicates that the current overhead cost allocation practice did not reflect the real costs incurred on the products. The lower actual gross profit obtained was mainly due to wrong cost allocation on the pump product.

After I read this case, I can say that exporting is more profitable to Cameron because they can do whatever they want at any time. This means that Cameron can earn the profit that it deserves, and it will be only to itself. In other words, if Cameron continues exporting, it can maintain its independence to manage better quality products at its own responsibility. Then, in the other side, the cost advantages will be higher because of the results of the size of the operation and the cost of the unit; what it is a benefit because in a long-term the economies of scale will work to determine better

What are the strategic risks and benefits of outsourcing production of the Temecula plant to contract manufacturers in China?

Westminster Company is a giant Global manufacturer of health products whose brand has been recognized by the world. As the company they have three different operations which produce and distribute different product lines. Their main strategy on which they are working and which is a major success for them is decentralized management. Now they are re-evaluating their traditional supply chain strategy because the company is getting too much pressure from their large domestic’s customers and global customers. Now the company has to study on

Wilkerson’s competitors have cut prices on their pumps, in order to maintain market share, Wilkerson also cut the price of their pumps. This dropped Wilkerson’s GM by about 15%. At the same time, Wilkerson was able to increase the price of their flow controllers by 10% without a drop in demand.

Winnebago operates in the luxury recreational motor vehicles industry. It’s main competitors are Thor industries, Malibu Boats, Polaris Industries, and Brunswick Corporation. These firms were chosen due to the fact that, while they may not all be in the RV industry, they sell similar products as Winnebago. Winnebago’s main line of business in the RV industry of all classes A, B, and C. Thor is the most similar to Winnebago due to the fact that all of its products are specifically in RV industry. Polaris, Brunswick offer a variety of products along with Recreational vehicles such from everything to snowmobiles to gym equipment. Malibu specializes in the boating industry, specifically small boats and boating accessories. The four competitors and Winnebago manufacture the products at their distribution centers and distribute them to to dealers who sell their products to the end customers. We have researched the luxury motor vehicle industry using the Porters Five Forces Model. The Porters Five Forces Model helped us analyze the different trends within the industry and see where Winnebago stands within them.

Since beginning 40 years ago, Pleasure Craft INC. has been successful in both the domestic and international marketplace. Currently producing two products, snowmobiles and personal watercraft, both of which have become mature markets and thus giving little room to grow, two options have been determined to further the growth of Pleasure Craft INC.. First being to start production on outboard motors. This option allows Pleasure Craft INC. to remain in a familiar market, utilizing current contacts and sales tactics. The second option draws upon Pleasure Craft INC.’s experience with small

Potential channels included: Heavy supply houses and heavy equipment distributors - provided access to a wide market but also absorbed additional profit margins. More importantly, they were unlikely to hold the enthusiasm needed to actively promote CMI’s pads and educate the market. Manufacturer’s reps – were commission-based transaction-driven salespeople. Reps held strong industry connections and offered access to a wide market without increasing labor costs. On the other hand they held low brand loyalty and could be discouraged by complex time consuming transactions requiring market education. CMI was also considering In-house direct sales force – they would have offered strong brand loyalty, product knowledge and professionalism but also take longer to gain market coverage and demand large expenditure on labor and training. CMI eventually decided to sign manufacturing reps who sold their pads to various distributors and supply houses.

This case analysis explores the possibility of Breezy, a leading supplier of carburators and air filters in North America, the possibility of developing offshore busines in countries where car manufacturing is growing. The report is structured as follows: First, there are five important questions that Breezy must consider and ask itself before developing a relationship with a new customer. After Breezy decides to go offshore, it will have to go through the negotiating process, which involves five steps. Breezy then, must have capabilities of how an offshore business is organized, consider the many different costs and risks involved in the implementation and decide how it will finance the project. The report also talks

(NSY) had been providing parts and services to the Mega-Yacht Industry since receiving their initial seed capital in 2000. The Mega-Yacht industry provided an attractive opportunity for NSY. Although the industry was small by comparison, serving only 10,000 vessels, it generated in excess of $1 billion in economic activity annually, divvied amongst the new build, and maintenance, refit and repair business sectors (Mark & Mitchell, 2003, p. 48). The industry’s supporting cast included captains and crews, owners, management companies, procurement agents, yacht builders and repair entities, brokers, and local husbanding agents. Although unknown to the firm at its inception, consultants in 2002 forecasted the mega-yacht industry would see annual growth of 6%, with the potential for even better numbers in the short-term (Mark & Mitchell, 2003, p. 48).

3.) The estimated product costs for valves, pumps, and flow controllers using ABC for overhead activities (primarily Ex. 1 & 4) and direct cost data from the Exhibits are:

John (CEO) and Jean Abernathy (CFO), a husband and wife team, owned and operated J&J Electrical Contractors, Inc. (J&J).1 J&J performed commercial, industrial, residential, and public electrical-contracting work. Electrical work

• This cost method does not provide the best system for JDCW’s cost allocation. By using only three overhead rates the present system grossly undermines the true production costs since other activities of the production process are not acknowledged.

Perhaps the easiest approach to the acquisition of BoatU.S. is to leave BoatU.S.’s current demand and forecast planning untouched and separate from West Marine’s planning processes. This would be inexpensive and non-disruptive to the current corporate culture. The drawbacks, however, could be a slow steady decline in profitability and reliability of the BoatU.S. brand, hence the reason for the acquisition in the first place.