Friday, March 13, 2020
Acuscan Executive Summary 3 Essays Acuscan Executive Summary 3 Essay Acuscan Executive Summary 3 Essay EXECUTIVE SUMMARY TO: Cliff OÃ¢â¬â¢Connor, CEO AcuScan, Inc. FROM: VP of Organizational Development SUBJECT: Observations and Recommendations for Optimization Project DATE: June 30, 2008 Purpose and Scope of Document The purpose of this document is to provide a basic overview of the current status surrounding the AcuScan Optimization Project. This document will provide a brief background and summary of the current situation, and then provide key points relating to the underlying issues. This document will then outline the options AcuScan has in order to address the project issues and recommend the most feasible course of action. Summary of the Situation The AcuScan Optimization Project, known as Ã¢â¬Å"Operation OptimizeÃ¢â¬ , is experiencing both cost and resource restraints. The company must cut costs by 15% in almost all departments, while at the same time creating new expenses by trying to launch a new product. The company has not produced a new product in some time and it is believed that in order to increase sales, the current iScanner technology must be utilized and built upon to reach out to a new market. However, there is a conflict between the Director of Marketing and the Senior Engineer, in that they have a different understanding of what can be and should be accomplished with the limited resources available. The Director of Marketing, Pat Lambert, crafted a project development plan that was based on an overall optimistic view of the project. Pat had concluded that the current iScanner technology would transition easily into the retail market with minimal efforts in programming and engineering. As of yet, no competitor had used eye scanning technology in the retail industry and this was considered a great opportunity for AcuScan. In order to take advantage of this unique situation, it was proposed that AcuScan release a product by August in order to gain the market advantage. A budget of $575K was proposed in order to cover the costs of the product development. The project began to loose momentum when the Senior Engineer, Kelly Thomas, expressed concerns over some unrealistic expectations. Kelly claimed that several project requirements were overly optimistic and pushed back on the project proposal, claiming that such a product could not be delivered by the August deadline. Based on this reaction, Pat concluded that contractors needed to be hired in order to work around the staffing constraints in the engineering department, and increased the project budget request by about $250K. Emails between the Director of Marketing and the Senior Engineer indicate that important issues need to be addressed before problems between the departments escalate to a point that will make it difficult to reconcile differences and work together in order to ensure the success of the project. Key Points Relating to the Situation Sales and service revenues have led to budget constraints which add restrictions to project funding. Both departments are experiencing stress due to limited resources, pressure to cut costs, and expectations to deliver a new product before the end of the year. Each department head is operating independently and not working together to collaborate as a team. A lack of trust and respect has developed between the departments heads due to poor communicati on. Decisions are being made based mainly on rather than performing formal research and analysis Conclusions The success of Ã¢â¬Å"Operation OptimizeÃ¢â¬ is critical to the future success of AcuScan by directly impacting an increase in sales revenue and broadening the companyÃ¢â¬â¢s customer base and marketing versatility. AcuScan must take immediate action to address concerns of both departments, and guide the project back on track for a successful rollout. At the same time, the company must realize that it will not be able to produce a quality product within the time allotted on a small budget. Recommendations and Actions to be Taken Based on the conclusions AcuScan has two possible options. One option is to delay the release of the new product in order to compensate for the lack of man hours. The company can split up the project into a series of rollout phases, which will extend the project timelines, but reduce the workload pressure being placed on the current engineering staff. This would save the company money in the short term, but could potentially impact their competitive edge in the long term if the competition develops a similar product first. The other option is to act on Director of Marketing proposal to hire contractors in order to take on the increased workload. The company would have a dedicated resource for the project while at the same time allowing the engineering staff to continue to provide a high level of quality service to existing customers. The company would have to make a short term budget sacrifice, exacerbating the current budget crisis; however the new product would launch before the end of the year and give AcuScan the competitive edge it needs to increase sales over the long term. It is proposed that AcuScan align budgeting goals to accommodate the current project timelines and making a small sacrifice in costs to aid in the development by hiring outside contractors. In order to encourage collaboration between departments, the Director of Marketing must allow that the contractors are selected and managed by the Senior Engineer, who will be the most knowledgeable as to the minimal extra man power needed and the skill set required to accomplish the tasks. The Senior Engineer must allow that some new product functionality must b e developed and brainstorm with the Director of Marketing to design a simple but innovative new product. The Senior Engineer must also work with the Director of Marketing to bridge the gap of understanding between the two departments by taking time to educate one another at a high level as to the nature of their job and how they can best serve one another. These action items must be incorporated into the project timeline and each department head must provide a weekly status update as to the progress of the new deliverables in additional to the overall development of the new product.
Wednesday, February 26, 2020
Integrative Project 3 - Assignment Example The primary strength of the company is its strong presence in the market. The brand utilizing the shelter of HP has a high global presence which helps it market the brand effectively. The Palm from HP is a device combining a mobile phone, (a separate product from HP) including touch controls, and a device enabled to communicate through internet (HP Annual Report , 2010). The Palm is based on HPÃ¢â¬â¢s Multi-touch user interface giving facilities of fast email, web browsing and many other features at a world class format. The device is compatible with both windows based PCs as well as Macintosh PCs. It also has a searching and maps feature used to give directions by connecting through internet. Palm compared to its competitors has more variety of smartphones compared to that of Apple and HP under its brand name. Recently the company had launched a new operating system named Palm series for smartphones which distinguishes it from the other brands in the same category along with givin g a disntingushed yet powerful experience to its users. Majority of the companyÃ¢â¬â¢s phones that are launched or had been launched in the market are equipped with multimedia capabilities, having music, high resolution camera, HD playback, high resolution gaming and access to applications with the help of HP App world. The range of smartphones by HP is certainly higher as compared to that of HPÃ¢â¬â¢s Palm. Also within every series of HP, there are 2-3 models for the customers to choose from. Strong distribution channel is also one of the characteristic features of the HP. The synchronization of HP is considered to be far better than that of Palm. The best example for this is calendar synchronization. The HP automatically adjusts any changes in time and date whenever such changes are made in the desktop that is connected to the phones whereas synchronizing contact and calendar information in Palm is not an easy process. The primary feature that Palm has a upper hand is its acce ssibility through the use of touch screen which gives the user a real time experience with the picture quality of more than 25K pixels per inch of the smarphone. This can be regarded as the best in the industry. However, HP with faster operating systems and innovative technologies is constantly trying to match with that. The most attractive part of technology is often the much more rapid speed by which it can communicate what its manual counterparts cannot. From their tablet computers, from all over the world, a person can contact clients, business partners, family, and friends. Additionally, it allows for instant updates during communication. While a phone call may require waiting until someone is available on the phone or mailing a letter through the post office, technology allows the interaction and the update to be instant. The speed also enhances the decision-making process. Communication may involve important decisions that need to be made quickly, especially in a business con text. Before, a person may have had to go back to senior executives before finalizing a decision. Now, technology allows instant communication no matter where they are, including scanning and sending relevant documents such as contracts and instant transcription of the conversation if needed. Communication can become faster with the advent of technology. The technologies offer numerous opportunities to save money and increase productivity, thereby increasing the efficiency. The
Sunday, February 9, 2020
Environmental Studies - Assignment Example overtime in abundance usually comprise of shallow, warm, marine waters, which is exactly the kind of environment that is required by organisms to form a kind of calcium carbonate shell and skeleton and extract the essential ingredients from the ocean water. These organisms soon die out and their shell and skeletons accumulate and settle to form a type of biological sedimentary rock. This rock will contain at least fifty percent calcium along with a multitude of other minerals and materials, namely; Quartz, clay minerals, feldspar and a few more. There are several large limestone deposits in the world that have been extracted for use in industry. In parts of the United States there are extensive deposits of limestone of various ages from a handful of thousands to more than 350 million years old. In India, several deposits of limestone can be found that are used by the local industries for production processes. More than two-third of India's production of limestone comes from five stat es of Madhya Pradesh, Rajasthan, Andhra Pradesh, Gujarat and Chhattisgarh. Each of these contributes more than 9 per cent of the country's output. The areas of Karnataka, Tamil Nadu, Maharashtra and Himachal Pradesh, each of which are producing over 5 per cent of the country's limeÃ stone, account for another 28 per cent of the counÃ try's production of limestone. . In India, the regions mentioned above; Madhya Pradesh, Rajasthan, Andhra Pradesh, Gujarat and Chhattisgarh, were the major sources of limestone that contributed to the nationÃ¢â¬â¢s supply. Together, Madhya Pradesh and Chhattisgarh had a tremendous total of 2,126 million tones of limestone in weight that contributed a total of twenty six percent to the countryÃ¢â¬â¢s overall production of limestone. Andhra Pradesh, individually,... This paper approves that limestone is the key ingredient in the creation of cement that is used to construct infrastructure. Despite the fact that India produced limestone in such abundance, there have been several shortages of cement that have halted construction altogether. The purest form of natural limestone that is found in some areas of India where limestone deposits exist, is used primarily for decorative purposes in government buildings, museums, extravagant hotels, and sometimes even homes if the occupants are able to afford it; Pure marble limestone is expensive compared to normal limestone. Limestone marble takes several unique shapes and patterns that make it valuable for these purposes in the form of floor tiles, statues, landscaping and roofing. This report makes a conclusion that sustainability is essential for the welfare of our world and the steady growth of society. We work to increase the sustainability of natural resources and the environment, for that purpose, we offer suggestions and recommendations to organizations. In this case, limestone is the resource in discussion. It is clear that limestone deposits will run dry, in fact, shortages have already begun. It is therefore important to look for sustainable solutions and replacements for limestone that will ensure continued, quality production for the business. A project known as The Efficient Limestone Crusher Project was introduced to increase the sustainable quarrying of limestone using specialized crushers and heavy machinery, applying this method may also prove sustainable for the business.
Thursday, January 30, 2020
Apple and Child Labor Essay Children and teenagers everyday are put into child labor, to make money for their families or pay back what their families borrowed. In this paper I will examine child labor around the world and why children need to be able to live without being put under such stress and poor living circumstances. I will also be talking about how child labor is involved in some electronic companies like Samsung and Foxconn. Lastly, I will be talking about what most people donÃ¢â¬â¢t know; within the last couple years the worldÃ¢â¬â¢s most known electronic company; Apple, Inc. has been one of the guiltiest culprits of child labor and of poisoning their employeeÃ¢â¬â¢s. Child labor is known all over the world, and we need to put a stop to it now! Although child labor is illegal in many countries, many children under the age of twelve still are employed in these harsh work forces. Many under age employees are employed by using a fake identification (Thompson). By using a fake identification, children or teenagers can be mistaken for an adult. If the employer says or provides an identification that shows he is age eligible and they accept him for the job, no one would know any different. It is not in the hands of the hiring company to know that the employer is using a fake identification. Children and teenagers are not getting fake identifications and working in these factories for no reason. They are to pay back the money that their family has borrowed from others, or the lack of ability to get an education. Child labor could be caused by problems in the family, with health, or lack of food, money, or water. Multiple governments around the world look the other way. Child labor is illegal but some governments do not punish the companies or groups that use child labor. Child labor is very cruel to the children. Governments and rulers around the world insist that if adults of a family borrow money, the family has to pay it back no matter what, even if it means selling their crops for money or putting their children into the work force. Due to the fact that children and teenagers are working at such a young age, the children are committing suicide and other self-harms. This should not be happening; young adults committing suicide because they are so stressed or they do not want to work at these companies but also because they are being accused of stealing products. For example, one of AppleÃ¢â¬â¢s suppliers, Foxconn, accused one of their employees of stealing an iPhone prototype. The employee would not dare to steal an iPhone and would not have done such a thing to get himself in trouble. The possibilities of his pay being withheld and being physically punished was very high for the employee. As a result he killed himself; he did not want to be under the large amount of stress added to the amount that he already had (Usher). This occurs in a lot of work forces, where the employees get so stressed and out of control that they cannot bare to live anymore; it happens especially in electronic factories in Asia. Many people think of child labor being associated with clothing, furniture, or toys, but in reality itÃ¢â¬â¢s not. Child labor is known in every industry. One industry that we all use is the electronic industry. Child labor is used in the electronic industry in a big way, not as much as clothing or furniture, but close to it. The Apple IPAD tablet you are holding in your hand, the Apple T.V media portal you are watching shows off of each night, the Apple Iphone you just used to call or text your friend, are all made with the help of child labour. AppleÃ¢â¬â¢s major provider Foxconn, has been proven to have employees under the age of Twelve (Usher). FoxconnÃ¢â¬â¢s manufacturing plants in Asia have admitted to having child employees that have been poisoned, and some have committed suicide (Usher). This is a situation Apple has a difficult time controlling. The use of child labor in the electronic industry should not be happening at all. It should not be happening in any industry period. Child Labour has been used to try and sabotage the success of certain companies. Samsung was accused of having workers under the age of twelve working in their factories [Thompson]. Samsung has denied the fact that they have underage workers. The rumor was created by RIM (Blackberry) to sabotage Samsung and gain an advantage in the marketplace. Samsung does not have employees under the age of twelve working for them. The name Steve Jobs brings so many amazing thoughts into your head, how he was the co-founder of the largest high tech companies in the wold, the go to guy and CEO of Apple, a multi-billionaire, and philanthropist (In Your Face Radio). Steve Jobs was an amazing man, but in realty he was just like a lot of other top executives, which get carried away with their money and make some bad decisions (In Your Face Radio). Many people think that Jobs was the one who started exploiting children in the business. It was said that Steve Jobs that created the child labor issues in the business because he lost focus and innovation in what he was doing, lost control of his factories and caused such a dilemma in the industry that almost broke the companyÃ¢â¬â¢s reputation. (Does Steve). AppleÃ¢â¬â¢s factory, Foxconn, has been caught with having 164 children in total working in many different factories around the world. (Clarke and Williams). Foxconn has been caught poisoning their employees with n-hexane, and have also been caught for abusing their workers. Tim Costello led a study in Taiwan, and went into to Foxconn and created a report based on the workers lives in Foxconn. The study showed that the company was abusing their employees by Ã¢â¬Å"corporal violenceÃ¢â¬ (Myslewski). Now this is in FoxconnÃ¢â¬â¢s factories where they make the parts for the Apple devices. Foxconn has fully admitted to all of the above. The major part of AppleÃ¢â¬â¢s manufacturing that is using child labor is Foxconn. As I said earlier Foxconn is the company with over 164 children working in its factory, they have been caught abusing and poisoning their employees. Foxconn is relied upon a lot by Apple. By being caught employing children to manufacture components, has caused an upset within Apple, and the ability to reply on Foxconn has come into question. Apple is an amazing company; however we need to know more about what goes on behind the closed doors within their manufacturing plants and their manufacturing partners facilities. In my opinion Apple is guilty in this situation of child labor. Personally I will continue to use AppleÃ¢â¬â¢s products because I believe Foxconn needs to organize their company and other factories that Apple is associated with or Apple needs to find another supplier. In order to fix the crisis of child labor I think that there should be a worldwide legal age to work and which each government must implement. This will decrease the young aged employees that work in countries like India, China, Japan, Pakistan, and many more. Due to there being no worldwide legal working age, problems like child labor occur. Child labor needs to stop, and companies like Apple can lead the way to change just like they have led the way in technology.
Wednesday, January 22, 2020
Maya Angelou has dedicated her life to end prejudices faced by many black females in the 20th century. As an author, poet, and entertainer, she is known best for her strong portrayal of African-American women. Some of her most outstanding work is the series of autobiographies that she wrote telling about her childhood. Her work has contributed immensely to Americans everywhere. She has also broken many barriers for black women in writing, entertainment, and in film making. Maya Angelou is definitely a positive role model to people everywhere. Maya Angelou has made many contributions through her poetry, writing, songwriting, acting, and film directing. She has written a series of autobiographical books focusing on her childhood until the birth of her own child, ten of which have appeared on the best selling list (Ã¢â¬Å"BiographyÃ¢â¬ 1). The most prestigious of the novels is I Know Why the Caged Bird Sings. This is a very controversial novel dealing with many serious issues including rape and murder. It is her most critically acclaimed work and was nominated for the National Book Award (Ã¢â¬Å"Maya AmericanÃ¢â¬ 1). She often writes using a female as the strong role model. In addition, she has published many distinguished poems which have received recognition by many people including President Clinton. Her poem Ã¢â¬Å"On the Pulse of MorningÃ¢â¬ was chosen by President Clinton to be read at the 1993 presidential inauguration. Many of her volumes of poetry have been nominated for the Pulitzer Prize inclu...
Tuesday, January 14, 2020
BCG Ã¢â¬â Join BCG Ã¢â¬â Interview Prep Ã¢â¬â Practice Cases Ã¢â¬â DistributionÃ¢â¬ ¦ http://www. bcg. com/join_bcg/interview_prep/practice_cases/disÃ¢â¬ ¦ The Boston Consulting Group Home > Join BCG > Interview Prep > Practice Cases > Distribution Strategy Distribution Strategy Crafting a Distribution Strategy for a Sugar Cereal Manufacturer Your client is the sugar cereal division of Foods Inc. , a U. S. -based distributor and manufacturer of packaged foods. According to the division president, Foods Inc. Ã¢â¬Ës traditional strength has been with grocery stores, which still account for the majority of its $1. billion in sugar cereal sales. But Big M Mart, a discount chain, has been growing at a healthy rate of almost 15 percent per year and has now become Food Inc. Ã¢â¬Ës largest customer. Your client is not sure how to react, and has asked BCG for assistance with its distribution strategy. Establish Understanding of the Case First, let me make sure I understand t he problem. Our client specializes in sugar cereals traditionally distributed through grocery stores. Sales to Big M Mart, a discount chain, have been growing at 15 percent per year, and the chain has recently become the largest distributor of the client's product nationwide.We are here to help evaluate the distribution strategy in light of Big M Mart's growth. That is correct. Could you explain to me how grocery stores differ from discount stores? Sure. Grocery stores generally specialize in food, as well as selling some household goods and over-the-counter pharmaceuticals. Discount stores, on the other hand, offer food alongside a wide variety of merchandise, including clothing, home electronics, and housewares. Does Big M Mart market its food products differently than do grocery stores? Discount stores advertise lower prices for a wide variety of foods, particularly staple, nonperishable foods.Could I take a moment to write a few notes to myself? Please feel free. Set Up the Fram ework Before making recommendations, I think we would need to evaluate whether sales growth at Big M Mart is good or bad for Foods, Inc. To do that, I would first look at how its sugar cereal performance at Big M Mart compares with that in other distribution channels. Second, I would look at its performance at Big M Mart in relation to competitors' performance. Next, I would determine what drives customer purchases. Finally, I would want to understand the supply chain.That certainly sounds like a reasonable approach. Let's proceed. Evaluate the Case Using the Framework 1 of 6 10/2/09 6:57 PM BCG Ã¢â¬â Join BCG Ã¢â¬â Interview Prep Ã¢â¬â Practice Cases Ã¢â¬â DistributionÃ¢â¬ ¦ http://www. bcg. com/join_bcg/interview_prep/practice_cases/disÃ¢â¬ ¦ First, I would like to get a better sense of where Big M Mart stands in relation to our client's other distribution channels by examining the client's sales data and margins, by distributor. The marketing department does not hav e margins by channel, but tracks sales and volume for its top five distributors.What does this imply about Big M Mart as a distribution outlet? It looks as if the top distributors have been growing more important, but particularly Big M Mart, which is growing faster than all the others. This is particularly true when we look at volume, where Big M Mart's growth is much higher than that of the other four channels. And how could you interpret what these data says about margins? While the client's sales through other distribution channels are growing faster than volume, Big M Mart volume and sales growth are the same, so the average price paid by Big M Mart has remained constant.That implies that sales growth at Big M Mart could have negative implications for our client's margins. Next, I would like to look at how our client is doing in relation to the competition within Big M Mart. Have they been gaining or losing market share? How might you find that out? I would try to interview Big M Mart's purchasing personnel, since they would probably track those data for their own purposes. Why would they want to talk to you? How might you approach such an interview? I would approach the purchasing personnel and suggest that our client and Big M Mart work ogether to identify best practices to reduce costs and increase sales of sugar cereals at Big M Mart. Let's say in a perfect world you could get a breakdown of Big M Mart sales for the four largest competitors (see market shares below). 2 of 6 10/2/09 6:57 PM BCG Ã¢â¬â Join BCG Ã¢â¬â Interview Prep Ã¢â¬â Practice Cases Ã¢â¬â DistributionÃ¢â¬ ¦ http://www. bcg. com/join_bcg/interview_prep/practice_cases/disÃ¢â¬ ¦ What can we infer about our client's competitors within this channel? Who should they be worried about? It looks like our client is losing market share, as is Tasty Breakfast, while Cereal Co. nd Private Label are gaining share. Private Label, however, looks to be growing from a very small base. I w ould like to explore why our client is losing market share to Cereal Co. at Big M Marts. Are their prices better than those of our client? After a period of price wars six to seven years ago that lowered industry margins, the cereal companies have refrained from price competition within the same channel. If prices are not driving the difference, I would look at other factors such as brand selection, percentage of shelf space, product placement, and in-store promotions.Visits to Big M Marts indicate that each name-brand company holds 30 percent of the shelf space, while private label has 10 percent. Cereal Co. brands, however, tend to be placed lower on the shelf than your client's products. Well, I suspect that children are a large target market for the sugar cereal manufacturers. The lower shelf placement could be especially important to children who are looking at the different types of cereals. Are there any other promotions? Some Cereal Co. brands have sales promotion tags, and the team notes that store flyers advertise specials on Cereal Co. rands for Big M Mart customer cardholders. So, even if all the companies are maintaining product prices, maybe Cereal Co. is strategically discounting prices to gain market share. It seems as if there is evidence of cooperation between Cereal Co. and Big M Mart. Do we know anything about their relationship? During earlier discussions with Big M Mart, you discovered that your client's competitors have 50 sales representatives dedicated to the Big M Mart account. Your client has seven. Cereal Co. appears to be dedicating more resources to its relationship with Big M Mart than our client is.This may explain its better product placement and promotion programs. 3 of 6 10/2/09 6:57 PM BCG Ã¢â¬â Join BCG Ã¢â¬â Interview Prep Ã¢â¬â Practice Cases Ã¢â¬â DistributionÃ¢â¬ ¦ http://www. bcg. com/join_bcg/interview_prep/practice_cases/disÃ¢â¬ ¦ I think I have a good sense of distribution and competition. I would now like to look at the customers and understand why they select the products they do. One hypothesis I have is that shifting brand loyalties are hurting our client's market share at Big M Mart. That's interesting. What do you think might motivate purchases of sugar cereals?There are lots of factors, such as the games in the boxes, the price of the cereal itself, how it tastes. To better understand consumer behavior, we might conduct market research, possibly through focus groups, customer observation, and price sensitivity studies. BCG teams often do such research. Let's assume your team conducts some analysis. Your research concludes that most buyers tend to fall into two categories. Approximately 60 percent of buyers go straight to one cereal and grab it. We can call this group the Ã¢â¬Å"brand-loyalÃ¢â¬ shoppers.Another 40 percent of shoppers look at all the cereals and then select one that interests them. Let's call this group the Ã¢â¬Å"impulseÃ¢â¬ buyers. For the brand-loya l shopper, the priority would be product availability, while product placement would be important for consumers who like to shop around. Within these groups, are consumers price sensitive such that one brand can lure shoppers loyal to another brand? In general, your research indicates that consumers are not price sensitive and are extremely loyal to their preferred brand.But when the preferred cereal is unavailable, the brand-loyal customers will purchase discounted cereals approximately 35 percent of the time. Well, from that information, it appears that price is not a major driver of purchases unless the preferred cereal is out of stock. In these stock-out situations, you said, brand-loyal customers will purchase discounted cereals 35 percent of the time. What happens when the customer does not purchase a discounted cereal? In approximately 25 percent of cases, the customer walks away without purchasing any cereal at all.In the remaining 40 percent of cases, the brand-loyal custom er will act like an impulse shopper and select another brand. Interesting. It seems as if product availability could be a major driver of total cereal volume for Big M Mart. Of course, we would need to know how often stock-outs occur that cause consumers to walk away without purchasing cereal occur. Since I have a pretty good understanding of customer motivation, I'd now like to ask a few questions about the client's supply chain. I would want to talk to our client's distribution personnel to understand the distribution process and to determine how often stock-outs occur.Can you describe how our client's cereal is distributed at Big M Mart? Cereals are distributed from the factory to the distributor's warehouse twice monthly. The retailer then stocks the shelves itself. Do we have any knowledge about when the individual stores are out of stock? No, we do not, since our client only delivers to the warehouses and has no direct access to in-store inventory information. Since we identif ied product availability as a key success factor earlier on, I would want to make sure that the stores were stocking the product correctly.Let's say that in your earlier in-store investigations, you found out that Big M Mart stores averaged 15 percent of sugar cereal brands out-of-stock, across all brands. 4 of 6 10/2/09 6:57 PM BCG Ã¢â¬â Join BCG Ã¢â¬â Interview Prep Ã¢â¬â Practice Cases Ã¢â¬â DistributionÃ¢â¬ ¦ http://www. bcg. com/join_bcg/interview_prep/practice_cases/disÃ¢â¬ ¦ Stock-outs would be a major problem for our client, since 60 percent of customers look for a specific brand of cereal and 35 percent of them would buy a discounted brand in a stock-out situation.Big M Mart would also have an incentive to reduce out-of-stock incidents, since 25 percent of the time, a brand-loyal customer will walk away without buying anything. Summarize and make recommendations Big M Mart is our client's leading customer, accounting for more than 20 percent of our client's su gar cereal revenue. Although sales to Big M Mart are increasing on an absolute basis, our client's margins there are lower than in its other channels and its competitive position is eroding in that channel. At Big M Mart, our client faces competition from both private label and Cereal Co. although the latter appears to be the greater threat. There appears to be a relationship between Big M Mart and Cereal Co. as evidenced by their joint promotions, the superior placement of the Cereal Co. product, and the substantial resources that Cereal Co. has dedicated to the Big M Mart account. We learned that 60 percent of customers are brand-loyal, implying product availability is most important. However, 40 percent like to try different kinds of cereal, indicating product placement is also important.Purchasers do not appear to be price conscious, unless the type of cereal they are looking for is out of stock, in which case there is a stronger tendency to base purchases on price promotions. I n terms of distribution, our client is making deliveries twice a month to Big M Mart's warehouses. Big M Mart, in turn, is responsible for stocking the shelves. We currently have no direct knowledge of when our client's items are out of stock at the individual stores, but there is evidence that stock-outs do occur with some frequency. Well, it sounds as if you understand the situation. What would you recommend the client do?The sales through Big M Mart appear to have a negative impact on the bottom line, as they have lower margins than sales through grocery stores. The client could work with grocery stores to ensure that they are able to compete effectively with Big M Mart in the sugar cereal market. This strategy could be risky, however, since Big M Mart is a large and important customer. Therefore, I would recommend that our client work more collaboratively with Big M Mart. To defend its current position at Big M Mart stores, the client should move toward a partnership with Big M Mart and dedicate more resources to the relationship.The customer and competitor data indicate that our client's first priority should be to improve distribution to ensure better product availability. In addition, it should push for product placement equal to, if not better than, that of its competitors. Why would Big M Mart be willing to enter into a partnership with Foods Inc? Foods Inc could offer to share its information about customer behavior to help increase revenues for both itself and Big M Mart. Stock-outs hurt Big M Mart in two ways. First, some brand-loyal customers simply walk away without purchasing cereal whenever their preferred brand is unavailable.Second, we know that other brand-loyal customers purchase lower-priced cereal whenever they encounter a stock-out of their preferred brand. Both of these instances lower Big M Mart's revenue. By eliminating stock-outs, Big M Mart could increase its sales by simply ensuring that customers don't walk away without making a p urchase. Converting these purchase occasions to sales would increase Big M Mart's sales of sugar cereals by more than 2 percent(1). Better availability also helps Big M Mart and our client increase their revenue by deterring the brand-loyal shoppers from trading down to lower-priced cereals.Recall that 35 percent of the brand-loyal shoppers purchase a discounted cereal if their preferred brand is not available. If improved distribution now makes the preferred brands more consistently available, the customers will pay a higher price for these products. Finally, we could use the information about consumer purchase behavior to help persuade Big M Mart to 5 of 6 10/2/09 6:57 PM BCG Ã¢â¬â Join BCG Ã¢â¬â Interview Prep Ã¢â¬â Practice Cases Ã¢â¬â DistributionÃ¢â¬ ¦ http://www. bcg. com/join_bcg/interview_prep/practice_cases/disÃ¢â¬ ¦ share information about product availability in its individual stores.We could work with our client and Big M Mart to improve the current distri bution system to allow for more economical deliveries, while at the same time ensuring that our client's product is consistently available in the store. Thank you. Those sound like solid recommendations, but I would suggest that you fully understand the root cause of the stock-out situations and the cost to eliminate them before moving ahead. (1) 15 percent out of stock x 60 percent brand-loyal customers x 25 percent willing to forgo purchase = 2. 25 percent 6 of 6 10/2/09 6:57 PM
Monday, January 6, 2020
Analyzing Elasticity of Demand Simulation DigiVal DigiVal Plus Manufacturing Company sells a range of computers, notebook computers, desktop computers, high-end servers and has a market share of 22 percent, along with another office in the U.K. with sales in Europe at 30 percent total sales. There are three team members who are qualified to get the companies market back on track. CEO, B.J. Downey, who targets the strategies, goals and revenue targets has steered DigiVal for the past 12 years. George Hernandez, Group Economist, who handles the analysis of economic trends in the market, Linda Jacobs, Product Manager, contributed vision and strategies within the company and Brent Richardson, Product Manager, that has a strong backgroundÃ¢â¬ ¦show more contentÃ¢â¬ ¦They would find gas station with a cheaper price. If the station lowered the amount of gasoline by 10% or 15%, there would be a line wrapped around the corner of that gas station. People would go out of their way to buy cheap gas. Total receipts and total revenue are determined by multiplying the price of the gas by the quantity sold. If the demand for a product is elastic, the amount consumer s buy will go up and the price will be lowered, but if inelastic, a lower price would mean a small increase in the quantity demanded. It would not be enough if sales increased. Substitutes and Compliments Gas cannot be substituted. For food, which is a good, can be substituted. If the price of fish and butter go up, buyers can switch to chicken and margarine. Small changes in the price of a product will cause people to switch from one product to the other. When quantity like this sells in a particular store or small store, the quantity changes drastically by the impact of store receipts, which tends to make the demand elastic. The more changes in substitutes the more elastic it becomes, the less substitutes for that particular product, the more inelastic the demand becomes. References: Colander: Economics, Fifth Edition, Microeconomics II, Describing Supply and Demand: Elasticity s Gary E.Show MoreRelatedSupply and Demand Simulation Paper886 Words Ã |Ã 4 PagesSupply and Demand Simulation Paper ECO/365 Week 2 Individual Assignment February 25, 2013 Supply and Demand The analysis will identify two microeconomics and two macroeconomics principles or concepts from the simulation, and explain why each principle or concept is in the category of macroeconomics or microeconomics. The analysis will identify at least one shift of the supply curve, and one shift of the demand curve from the simulation and what causes the shifts. 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