1. Based on the spreadsheet data, how would you characterize Steel Works’ products? What about Steel Works’ customers? Given your answer and the information in the case what does this suggest?
Company Profile:
Steelworks Inc., from the case produces seven different types of products from both specialty and custom products. From the case it’s evident that the specialty product contribute to 67% of the revenue produced by the company. The specialty products ideally deal with small business customer whose annual business range is less that 1 million. The custom division produces products for large business customers and its essential that they hold stock in the inventory throughout the year to cater the needs of the customers. From the
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The majority of products made by the Steelworks inc is sold to small business owners. Its by their business that the company is able to generate a revenue of 67 million. The case also gives the solution to stop manufacturing the products that are values only for few thousand dollars. My suggestion would be it would be unwise if the company decides to stop on those products where the co-efficient of variation is low and contribute to the revenue of the company. Its equally beneficial to deal with small-sized business customers as well.
Customer Profile:
The company deals only with a handful of huge business customer as in custom line, it has one customer who buys Duraflex R23, and even the demand of Duraflex R23 is low compared to that of Durabend R12 and R15. But the cost of handling and storing the inventory for serving the huge business customer is taking a blow on the company revenue. On the other hand specialty products has 130 customers for 120 products that include high, medium and small-scale business too.
Review Policy:
From the case its evident that the specialty products are manufactured in lot, one in one month. So its high advised that the company follow periodic review policy to maintain the inventory level in optimum place. The specialty products generally rely on the
If the company decided to sell the new product at price of D.Cr. 8.20, that means the full fixed expense of 1.20 is covered and the company will make high profit. However, the selling price of D.Cr. 8.20 is very high and under this price the company will sell the new product at a lower volume than what the company planned sale volume in the budget and that will affect the company in the market as a strong competitor in the food manufacturing. According to the case, the company sales volume drop to 30 tons when the product was sold at the price of D.Cr. 8.2. Thus, my recommendation are as follows:
The second Industrial Revolution was an era that created many inventions off of the first Industrial Revolution, which included refining techniques to chemicals, electricity, transportation, and production engineering to name a few. One of the most highly technological innovations of the second Industrial Revolution, however, was the innovation of steel.
7. Based on the data in case Exhibits 1, 5, and 6, is Costco’s financial performance superior to that at Sam’s Club and BJ’s Wholesale?
The company is looking to increase profitability and find a long-term solution to the inventory problem.
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
The company is weakened mainly by its lack of technological advancement in every area of production. For example, if the company chose to modify their equipment to produce their “Atherley” model as well, it would be able to lower production costs of this model, in turn increasing the profits of this model further. In addition, the Atherley Furniture Company greatest threat is the decreased market for their “Parkdale” model. The “Parkdale” model has the most time consuming and costly production. With lack of a market for this model, the company stands to continue to lose profits. In conclusion, if the company wishes to continue to operate their chair division profitably as well as efficiently, the above issues need to be addressed and corrected.
For many Americans, the late nineteenth century was a time of big business, marked by economic and social evolution. In the period between the 1880 and 1920, the American economy was growing at a rapid pace. Many European immigrants without industrial skills flooded into American factories and steel mills. These "new comer's" came in search of better economic opportunity, which paved the way for Heavy, low paying labor that became the job description of the era for many immigrants. One such story of immigrants of the time is Thomas Bell's Out of this Furnace. This not only a story of three generations of Slovaks and the challenges they faced but also about the Americanization and "evolving
Assess how the type of market structure impacts your chosen company’s financial performance as measured by performance variables over the past three years. Support your response with data and graphs illustrating two performance variables of your choosing (e.g., sales, net income, stock price) over time.
In the case of Mendel Paper Company which produces four basic paper products lines at one of its plants: computer paper, napkins, place mats, and poster board. Although the plant superintendent, Marlene Herbert is pleases with increased sales he is also concerned about the costs. The superintendent is concerned with the high fixed cost of production, the increases in fixed overhead and even variable overhead. He feels that the production of place mat should be discontinued. His reason for the discontinuation is that the special printing is driving up the variable overhead to the point where the company may not find it profitable to continue with the line. After reviewing the future predictions of the
The sales composition is split into 37% from grocery stores, 20% from drug stores, 35% from mass merchants and 8% from miscellaneous sources. 70% of their total sales value is derived from 10% of their important customers. The company has foreseen valuable increase in their demand and is about to face some problems due to their traditional distribution network and their competitors. To focus these issues, they have decided to improvise on certain issues by collaboration with suppliers and customers which are discussed below.
1. Please conduct a financial ratio analysis using the data in Exhibit 2. How do the results reflect different strategies pursued by the 4 firms?
Class division has existed throughout time, both in its range of meaning and complexity of describing social division. The modern implications of class can be seen as a general word for groups or group distribution that has become more common. Rebecca Harding Davis’s short story Life in the Iron Mills, together with Raymond Williams’s entry Class delineates the oppressed lower class in a vivid and moving way, exemplifying the impact of social divisions on oppressed working labourers. Davis “embodies a grim, detailed portrayal of laboring life” (Pistelli 1) with an articulate correlation of Williams’s entry Class, structuring her narrative and focus of attention on gender, industrialization, immigration, and social divide. This essay
We have all heard this joke. Only now the horse has been replaced with consumers of steel in the US steel industry. Why? Many companies in our economy that use steel as an input to produce their goods are staggering due to recent extraordinarily high steel prices. President Bush dropped a tariff on imported steel on Thursday March 4th; according to basic economics, this cancellation of the steel import tariff should have dropped the price for US domestic consumers. Unfortunately though, that hasn't happened. Steel prices are currently at record highs and many forecast even higher prices to come. This puts huge pressure on small businesses that are dependent on steel for their well being. With higher prices
Firstly, it is strategically beneficial for the company to continue to produce products A, C, and D. However, you should discontinue production of product B, as it is unprofitable and is losing the company money. Product B has been losing the company $2,307 per reel. If the company deems it is essential to keep producing product B in order to retain their customer base, we recommend changing the production schedule. For example, during times of lower demand, you can produce products such as B that do not make as much money, but you will still retain your customers’ business and satisfy their needs. During times of higher demand, by discontinuing the production of product B, the company will be able to produce the more profitable products such as A, C, and D.