Kranworth Chair Case Study Essay example

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ACCT 463/CCMA523 WINTER 2015 ASSIGNMENT 1 KRANWORTH CHAIR CORPORATION Company Overview Kranworth Chair Corporation (KCC) was incorporated in 1987 by Weston Krantsz and Kevin Wentworth. KCC is a manufacturing company, and the name of the Company is associated with FOLD-IT! brand that includes production of high-quality and fashionable portable, folding chairs and related products. The main manufacturing line was concentrate to produce (i) folding chairs (produced at several price points) and related products (tripod stools, ottomans, costs, and stadium seats) in Mexico and China manufacturing facility and (ii) custom-designed products in the Denver location. The main KCC’s customers were: • Major retail chains (Wal-Mart,…show more content…
New changes in the market that might result in high risk of losing of good market share and drops in the profit, caused top management to revise the Company's business direction and structure. In order to reach the proposed objectives the new Company strategy consists in delegating some of the decisions from Top Management (TM) to Division Managers (DM). The Table 1 shows how the existing decisions are splitted between TM and DM. However, considering the Company business direction there is still new work to be done to help draw a clearer line on decision-making with regards to important business decisions. For example, under the new structure, human resource (HR) decisions by the top management do not specify if it includes promotion of staff. Table 1 Recurring decisions mentioned in the case Old structure New structure EXISTING: Markets to serve and what products to sell on specific markets TM DM EXISTING: Advertising strategies TM DM EXISTING and NEW: Supply chain and quality control resulting in reducing the stock keeping unit TM TM EXISTING: Capital financing decisions (Which departments to invest in (e.g. R&D) and whether through debt or cash) TM TM EXISTING :Suppliers selection TM DM EXISTING: R&D decisions: the priority to develop new product TM TM EXISTING : Legal and intellectual property TM TM EXISTING :Corporate identity TM TM NEW: R&D decisions: market research to develop stronger consumer focus and understand

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