Strategic Planning - a Case Study

2687 words 11 pages
Show More
Case study

Introduction Clifton Industries Ltd. is a relatively small but independent company within the Berbeck Industries Group. Its purpose is to supply a range of products to aircraft manufacturers and its mission is to manufacture electromechanical products for NA and European markets and electronics products for NA market. As can be seen from the SWOT analysis in Appendix A, the company’s current core competencies are skilled labour and diverse manufacturing capabilities. Clifton’s main products are European electromechanical products (“old OE”) and spares and repairs, but due to predicted decline in future sales of these products, Clifton had begun producing electromechanical products (“new OE”) for the N-American market as well …show more content…

Thus reducing manufacturing complexity through the modular design would allow Clifton to tender successfully in the price-sensitive NA market. This has succeeded so far, but upon examining Exhibits 7 & 9, it can be seen that both modular contracts have been sold at a loss so far! The difference between the estimated profit of the products and the final value to Clifton can be seen in Figure 2 below.
$140.00 Calculated Profit(or Loss) Per Unit $120.00 $100.00 $80.00 $60.00 $40.00 $20.00 $0.00 -$20.00 -$40.00 A 463 L 195 Product Ref J 105 Estimated Actual

Figure 2: Profit comparison

3

MANF 9471

Case study

The cause of this additional unexpected cost can be put down to lack of experience with the modular design. Both factors of entering a new market & using a new product have compounded the inexperience factor to create a cost greater than that charged for the product. This now creates the need for the reevaluation of the modular design. The modular design has an initial setback in that it will have low margins and even losses in the modular design until significant experience is gained. From the analysis carried out in this section, it can be seen that the NA electromechanical product is a question mark with the potential of being a cash cow if experience is gained quickly and hence the product is manufactured efficiently. The ideal strategy to be used in the manufacture of these products is a cost

Related

  • Swots: Strategic Management and Swot Analysis
    10124 words | 41 pages

    simplicity and catchy acronym perpetuates its usage in business and beyond as the tool is used to assess alternatives and complex decision situations. In the business arena the grouping of internal and external issues is a frequent starting point for strategic planning. It can be constructed quickly and can benefit from multiple viewpoints as a brainstorming exercise. Typically, managers first consider internal strengths and weaknesses (at the top row of the 2 × 2 grid) which can include image, structure,….

    Show More
  • important instructions
    3625 words | 15 pages

    Marketing Research(Marketing Research Process) T-1:Chapter 4 Lecture explains about detailed marketing research process Students shall be able to design, develop and execute research projects to solve a specific marketing problem Case Study Marketing Research(Marketing Information System) T-1:Chapter 4 Lecture explains about marketing information system as an aid to managers for decision making Students shall be able to take decisions to solve a specific marketing….

    Show More
  • Edmondson
    2128 words | 9 pages

    leader to sally forth into greener pastures. Even as the paints industry is emerging from the shadow of recession, Asian Paints (India) Limited (APIL), is mixing new shades to emerge with winning colors. Says their Managing director: "With proper planning and a comprehensive approach to issues, we intend to keep pace with the growth of the industry". APIL is actually targeting a growth rate that is higher than the 9 to 10 per cent that the industry has been averaging recently. APIL's approach is….

    Show More
  • Multi Projects Inc Case Study
    5789 words | 24 pages

    CRANEFIELD COLLEGE OF PROJECT AND PROGRAMME MANAGEMENT MODULE M 1 GROUP ASSIGNMENT CASE: Multi Project Inc. (Multi projects strategic objective realisation through organisational structure, culture, and succession planning.) DATE: 07/06/2013 Please include the following declaration: “I/We hereby declare that this assignment is entirely our own work, and that it has not previously been submitted to any other Higher Education Institution. I/We also declare that all published and unpublished sources….

    Show More
  • The Bluesky Software Consulting Firm
    2118 words | 9 pages

    6000-Integrated Studies in Management People clearly are an organization’s most critical resource. Their knowledge and skills along with their commitment, creativity, and effort are the basis for competitive advantage. It is people that have creative ideas for new products or for process improvements that devise marketing strategy or take technologies to the next level. As consultant for Blue Sky, it is my obligation to develop recommendations based on issues addressed in the case, to ensure Willis….

    Show More
  • Robin Hood Case Study
    1759 words | 8 pages

    Running Head: ROBIN HOOD CASE STUDY University of Maryland University College Analysis of the Robin Hood Case Study Introduction This paper will identify Robin Hood’s organizational strategy by using the Balanced Scoreboard approach, based on the framework of performance measurement. According to Thompson (2005), “the scoreboard approach to objective settings advocates using a company strategic vision and strategy as the basis for determining what specifics strategic and financial outcomes….

    Show More
  • Mgt 330 Management Planning Paper
    1257 words | 6 pages

    Management Planning Paper MGT 330 Management Planning Paper The Boeing Corporation is the world’s leading aerospace company and is the largest manufacturer of commercial jetliners as well as military aircrafts. Boeing has teams that manufacture missiles, satellites, defense systems, and communication systems. NASA turns to Boeing when they need something and Boeing operates the International Space Station. Boeing has a broad range of….

    Show More
  • Management and Study Unit
    41797 words | 168 pages

    MANAGEMENT STUDY GUIDE FOR MODULE 2 PURCHASING AND SUPPLY MANAGEMENT PPSM026 i © 2011 University of South Africa All rights reserved Printed and published by the University of South Africa Muckleneuk, Pretoria Author: Ms Irma Fourie PPSM026/1/2011-2013 ii PURCHASING AND SUPPLY MANAGEMENT (PPSM026) CONTENTS TOPIC 1: THE PURCHASING FUNCTION: AN OVERVIEW The purchasing function in perspective The task of purchasing and supply management Purchasing processes and procedures Study unit 1: Study unit….

    Show More
  • Public Relations and Strategic Management
    9950 words | 40 pages

    Journalism Studies, Volume 1, Number 2, 2000, pp. 303–321 Public Relations in Strategic Management and Strategic Management of Public Relations: theory and evidence from the IABC Excellence project JAMES E. GRUNIG AND LARISSA A. GRUNIG University of Maryland, USA ABSTRACT This article establishes the case for public relations as a critical component of an organization’s strategic management processes and of the subsequent strategic management of public relations in an effective organization. The….

    Show More
  • Longterm View of Higher Education Institution Strategic Plan
    902 words | 4 pages

    Biola | STRATEGIC MANAGEMENT AND LEADERSHIP | [Date] Biola | STRATEGIC MANAGEMENT AND LEADERSHIP | [Date] HIGHER EDUCATION STRATEGIC DEVELOPMENT- A LONG TERM VIEW CASE STUDY OF UNIVERSITY OF ABERDEEN. HIGHER EDUCATION STRATEGIC DEVELOPMENT- A LONG TERM VIEW CASE STUDY OF UNIVERSITY OF ABERDEEN. TOPIC OVERVIEW Economic Co-operation and Development’s (OECD’s) report, Education at a Glance (2012), says 30% on average of adults in OECD countries have tertiary level education. According to the report….

    Show More

Popular Essays