Curled Metal Inc – Engineered Product Division
Overview
Cumberland Metal Industries (CMI) was a company which sold metal as raw material in other products. After the company had developed the product – Slip Seal that could meet the demanding specification of the automakers, it had grown rapidly over the past decade. The sales increased from $750,000 in 1991 to over $55 million in 2007. However, the sales decreased from 61 million in 2006 to 55 million in 2007, a net decrease of 9.5%, the net profit decreased from 5.7 million in 2006 to 3.5 million in 2007, a net decrease of 38.7%. The company was under the pressure to diversity its products in order to increase the sales and the net profit. CMI had developed new product, curled metal
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Independent pile-driving contracts represented "the frontline buying influence." They were knowledgeable, but not sophisticated.
Pricing
CMI was first manufacturer for CM pads, there was no direct competition and no available selling price in the market that CMI can take reference to. In view of that, CMI could use two test results of Kendrick and Corey to determine the economic value of CM pads. According to the Appendix I, the average economic value of CMI pad was 3,304. This value had taken into account of less CM pads required per job and the cost saving in equipment and labor . But the value to the customer should be higher due to some intangible advantage, for examples, lower accident claim as fewer set changes required for CM pads. Besides, lower health claim as CM pad contained non-toxic material. In order to gain the market share for this new product, we would recommend CMI to set the price of CMI pad around 85% of economic value, saying 2,805, promote to the market that it was much cheaper to use CM pads with superior performance and cost efficiency. Besides, different discounts can be granted to the customers depend on the length of the contracts signed and volume of the pads purchased, ranging from 10% to 25%.
Market strategy
Positioning
CMI could position CM pads as new industry standard, while emphasis on cost efficiency with superior performance. It should demonstrate to the market that CM pads had several
The Decisions the company needs to take are what price should be charged for it, and how to market it to the costumers (channels).
6. How does the current reimbursement level of $140,000 per case affect a decision to use or not use marginal cost pricing? Does the amount of excess capacity affect the decision? Why?
Owens & Minor is a distributor of surgical and medical supplies to hospitals and other health care facilities. Due to changing demand from customers, the company is facing increased operating costs, which has resulted in lower profit margins and even losses. In 1993, O&M recorded an $18 million profit, which was reduced to a loss of $11 million in 1995. The entire industry is experiencing similar difficulties. In an effort to resume profitability, O&M is evaluating alternatives to “cost-plus pricing”. Cost-plus pricing does not reflect the true cost of the services provided by O&M. Customers are demanding more of O&M while
The inclusion of lithium in Reynolds X100 makes sure to block any dislocations within the alloys crystal structure, giving it an outstanding fatigue resistance.
While we are performing our analysis on different aspects of the company, we look at the three main types of cost. When we remain devoted to improving our costs, and the faults related, we show our same devotion to our consumers. This is portrayed by the quality of products we put on the shelves. Prevention costs, appraisal costs and Failure costs are areas
There are many trade-offs for each of the decisions that a company makes within all three types of these cost types when quality consideration is used. If the company decides to put more time into training employees properly on operating machines and
Siam Cement’s offer to purchase an initial order of 200 units at $9,000 per unit, would lead to a net profit of $200,000. While this immediate cash influx may seem advantageous in the short term, it will not offset yearly operational expenses of $250,000 (See Exhibit 1). Additionally, accepting Siam Cement’s offer would position Rubbertech as an Original Equipment Manufacturer (OEM). This decision could impede potential growth that would far exceed the offer that is currently on the table. If Rubbertech does not accept Siam Cement’s offer, they can seize a part of
In order to meet customer demands for higher product quality, to comply with federally-mandated environmental regulations, and to reduce production costs, HCC must spend $2,000,000 within the next three years to upgrade equipment. The upgrade is expected to result in production efficiencies that will lower material and labor costs by reducing defective products, process waste, in-process inventory, and production man-hours through simplified work processes. It has been over a decade since significant modifications were made to the production facilities. Those changes were mostly technical in nature and did not substantially alter work processes or reduce overall employment. The average productivity gain in the industry for the past five years has been 3% per year. Financing for the loan to purchase the equipment
Situation analysis: CMI is looking to diversify its portfolio. It wants to introduce a new high performing cushion pad into the pile-driving market. CMI will initially target small engineering/construction and independent pile-driving contractors. CMI will have the first-to-market advantage, as there are currently no direct competitors for metal pads. In terms of channels, CMI would distribute its pads through manufacturing representative.
Timken was known as a leading manufacturer of highly engineered bearings and alloy steels and famous for its tapered roller bearings with over 200 types in more than 30,000 sizes. It was also the market leader in mechanical seamless steel tubing and shipped more than one million tons of premium alloy steels annually. Timken was located in Canton, Ohio. However, its operation was not limited in Ohio but in twenty-five countries and employed over 20,000 people worldwide. In the early 1990s, Timken intended to take the U.S model to Europe with some customization for the local market and focused on case-carburized tapered roller bearings. In early 1997, Timken reviewed its strategy with specific aim for
CMI must position his new cushion pad has an innovative and technology advanced product that can be more effective and reduce costs when compared with conventional pads (See Table G). CMI is the pioneer in cushion pad market and present their product having High Performance, Durability and Reliability.
Curled Metal Inc. (CMI) specializes in selling metal-based products to various markets. With over $55 million in annual sales (FY 2007, Exhibit A), they’ve managed to capture 80% of the automobile industry’s market share by developing and selling a highly specialized product, Slip Seal, designed just for auto manufacturers. They’ve seen a recent slip in sales (a loss of nearly 10% from 2006 to 2007, Exhibit 2), and the pressure is on them to diversify their product line and decrease dependence on the auto industry. They’ve recently developed a new product that aims to revolutionize the pile-driving industry. The introduction of the CMI Cushion
Following this review, it is my recommendation that we enter into a contract for the purchase of the equipment in question before the end of the year for the following reasons. Currently, our tax rate is not particularly favorable. We have experienced some small reductions in the late 1970’s, however the introduction of Supply-Side economics
The American Curl is well-known for its ears which are distinctively crinkled. The history of this type started in June 1981, in Lakewood, California. According to the tale, 2 felines with unusual crinkled ears strayed around the doorstep of feline fans, Joe as well as Poise Ruga. However, among them disappeared quickly after they were viewed with each other. The various other, a longhaired black cat that Ruga named Shulamith, meanings black however comely, visited them. In December 1981, Shulamith delivered her initial clutter of 4 kitties. Out of these four kittens, 2 had crinkled ears. A geneticist who was gotten in touch with to study this sensation confirmed that this uncommon; crinkled ear was a hereditary feature and also was acquired in every case and there is no deformities attached to it. http://dog--food.com/american-curl/
This Research is about inspecting the item cost and strategies received by High level workers in the organization to accomplish immediate and backhanded cost of the item. The way we compose and how we assess the item cost we have picked the organization called Hammer Metals Limited and by examination we became more acquainted with how it extents the organization and how it is figured out how to get the authoritative objectives to be met. In this concentrate, workers use different ways to deal with control immediate and backhanded cost of the item. The result highlights the organization 's commendably track immediate and circuitous cost that helped it to make metal items at little cost and hold on in the aggressive metal industry.