Vershire

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Case 4-1 Vershire Company Internal Environment Analysis * Vershire is a diversified packaging company * Several major divisions * One of the largest manufacturers of aluminum beverage cans in the United States. * Plants scattered throughout the U.S * Key players include: CEO, divisional GM, vice presidents of marketing and manufacturing External Environment Analysis Industry competitors: * Five beverage container manufacturers accounted for 88% of the market. * Some processors manufacture their own containers. * Alcan, Alcoa, Reynolds all manufacture aluminum cans. The aluminum can manufacturing industry contains several competitors. With almost 90% of the industry divided between 5 producers,…show more content…
Corporate Level Strategy Extent of diversification: Diversified “Diversified packaging company with several major divisions” Degree of relatedness: Unrelated * Budget was used as the primary tool for measuring performance * Divisional GM’s had full control of units besides raising capital and labor relations. Business Unit Strategy Mission: Build One of the company’s objectives of the approval and review process is “to evaluate actions taken to increase market share or to respond to competitor’s activities.” Competitive Advantage: Low cost The fact that Vershire remains one of the largest aluminum can manufacturers in the U.S suggests that customers are satisfied with the cost and specifications of their products. Key Success Factors 1. Market share- One of the largest manufacturers in the U.S 2. Customer Satisfaction- Evident that customers are satisfied with their products and are not ‘jumping ship’. 3. Customer Retention Management Control System Description: Vershire Company has two separate processes in place. The first has to do with the company’s manufacturing environment, which acts as an engineered expense center for the company. This is told in the way they do their manufacturing budget as variable costs are all valued at a standard rate. This also falls in line with a regular manufacturing plant, as plant tasks are normally repetitive. This is

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