Professional Documents
Culture Documents
Submitted by:
Junio, Jovy Kate C.
Jagonob, Bena B.
Submitted to:
Engr.Charito C.Labao, MBA
March 6, 2016
Southern Recreational Vehicle Company
In October 2001, the top management of Southern Recreational Vehicle
Company of St. Louis, Missouri, announced its plans to relocate its
manufacturing and assembly operations to a new plant in Ridgecrest,
Mississippi. The firm, a major producer of pickup campers and camper trailers,
had experienced 5 consecutive years of declining profits as a result of
spiraling production costs. The costs of labor and raw materials had
increased alarmingly, utility costs had gone up sharply, and taxes and
transportation expenses had steadily climbed upward. In spite of increased
sales, the company suffered its first net loss since operations were begun in
1982.
When management initially considered relocation, it closely scrutinized
several geographic areas. Of primary importance to the relocation decision
were the availability of adequate transportation facilities, state and
municipal tax structures, an adequate labor supply, positive community
attitudes, reasonable site costs, and financial inducements. Although several
communities offered essentially the same incentives, the management of
Southern Recreational Vehicle Company was favorably impressed by the
efforts of the Mississippi Power and Light Company to attract clean, labor-
intensive industry and the enthusiasm exhibited by state and local officials,
who actively sought to bolster the states economy by enticing
manufacturing firms to locate within its boundaries.
Two weeks prior to the announcement, management of Southern
Recreational Vehicle Company finalized its relocation plans. An existing
building in Ridgecrests industrial park was selected (the physical facility had
previously housed a mobile home manufacturer that had gone bankrupt due
to inadequate financing and poor management); initial recruiting was begun
through the state employment office; and efforts to lease or sell the St. Louis
property were initiated. Among the inducements offered Southern
Recreational Vehicle Company to locate in Ridgecrest were:
1. Exemption from county and municipal taxes for 5 years
2. Free water and sewage services
3. Construction of a second loading dockfree of costat the industrial site
4. An agreement to issue $500,000 in industrial bonds for future expansion
5. Public-financed training of workers in a local industrial trade school
Problem Identified:
Strengths
Weaknesses
Opportunities
Threats
Submitted by:
Junio, Jovy Kate C.
Jagonob, Bena B.
Submitted to:
Engr.Charito C.Labao, MBA
March 6, 2016
Ambrose Distribution Center
The Ambrose family owns a small regional chain of retail stores. Their best-
known products are audio CDs, concert DVDs, DVD players, and audio
accessories. Currently, the family utilizes the services of an independent
contractor to supply their stores by truck. The family is not completely satisfied
with the timeliness and reliability of the contractor. The family has researched
the issue of distribution centers, and has come to the conclusion that it will
discontinue its contract with the trucking contractor, and go forward with its
own distribution center (DC).
The familys research shows that there are two distinct capacity
configurations for distribution centers: "small" and "large." The small version
can support 5 retail outlets; the large can support 10. Annual fixed costs for
the small are $2,000,000 each; each large has annual fixed costs of
$3,600,000. The familys cost accountant treats variable costs as proportional
to the amount of merchandise moved through a facility. Last year, that
proportion was 35% of the value of merchandise. The organization recognizes
that the other major cost is shippingit must consider transportation costs of
$2,00 per ton-mile. (A load of 40 tons moved 10 miles is 400 ton-miles.)
The locations are shown in the table at right. Each distance unit equals 40
miles.
The family has contacted Robert Piland, a professor in Texas, to serve as its
consultant on this project. It asked Professor Piland to answer several
questions. Should the chain construct one large distribution center or two
small ones? Where should the distribution center(s) be located? What will be
the annual total costs associated with each choice? What considerations
other than cost should be considered in making this decision?
Company analysts have done forecasts of growth and demand, and suggest
that the 10 stores may become more alike in size in the future, and that each
will need to be supplied with approximately 600 tons of merchandise per
year. If this demand forecast is valid, would Pilands recommendation (one
distribution center or two) be any different?
DISCUSSION QUESTION
Problem Identified:
Strengths
Weaknesses
Opportunities
Threats
1. A company is considering the relocation of its manufacturing plant
and administrative offices from a small city in Northern China to a
similar-sized city in the South.Approximately 20% of the residents of the
city are employed by the company,and many others are employed in
business such as banks,personal services,restaurants,shopping centers
and supermarkets that would suffer a decline in business if the
company decides to relocate.Does the company have a social
responsibility to factor into its decision the impact that its move would
have on the city?Explain your reasoning.
The right entitles and compels the individual franchisee, in exchange for a
direct or indirect financial consideration, to use the franchisor's trade name,
and/or trade mark and/or service mark, know-how(*), business and technical
methods, procedural system, and other industrial and/or intellectual property
rights.
Along with getting the rights and being obligated to the concept of
franchiser the franchisee have to go through many investigations regarding
the acceptance of the brand and long term sustainability because opening
a new outlet always carries huge investment, effort and the risk as well. Some
of the very important factors to be investigated are:
Skills & capabilities of the owner: The owners capabilities and skills that is
required for the extension of business is the very first factor to be considered.
Location: It is another very important aspect because location has the main
role in success and failure of the business. The distance of one outlet with
another has to be carefully analyzed so that the
existing outlet may not collide with the new one. Movement of people
around the new location is also important part.
Customers & service: The demand of customer also has to be analyzed
because opening fast-food restaurant in a place where people desire to
spend long hours or partying would not be the good idea. The outlet has to
be able to provide the fast and fine service as the name is fast food. For this
the team design and well trained employees are needed.
Test & Hygiene: Hygiene is the main concern of people having fast-food
nowadays if the restaurant is not able to maintain hygiene then that wont
last long. And if new outlet is not able to serve the test as the old one then
that may upset their customers that factor also need to be considered.
Team Building: There is no any argument that team can perform better than
individual. The major objective of team building should be on achieving its
goal. With the help of team, productivity can be increased whether it is in
term of decision making, working condition or quality. Also members of the
team are motivated when they work in team.
While opening several additional sites we can capture the market and know
them gradually. After studying and knowing the market we can stick with the
profitable market and leave the rest. Presence of the company will be better,
hence providing better opportunities. It will obviously be costly compared to
opening one additional site but with the proper management and control
system it can be turned into profitable business.
Conclusion