Kranworth Chair Case Study Essay example

2510 Words Feb 21st, 2015 11 Pages
ACCT 463/CCMA523

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,
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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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