Flexcon Case Analyses Essay examples

S.P. is admitted to the orthopedic ward. She has fallen at home and she has sustained an intracapsular fracture of the hip at the femoral neck. The following history is obtained from her: She is a 75-year-old widow with three children living nearby. Her father died of cancer at age 62; mother died of heart failure at age 79. Her height is 5’3 and weighs 118 pounds. She has a 50 pack year smoking history and denies alcohol use. She has severe Rheumatoid Arthritis (RA) and had an upper GI bleed in 1993 and had Coronary Artery Disease with CABG 9 months ago. Since that time, she has engaged in “very mild exercise at home.” Vital signs are 128/60, 98, 14, 99 degree farenheight (32.7 degrees C) SAO2 94%

5. CVS’ additional competitor Walgreens is behind them by a market cap of roughly $10

The last alternative for estimating fixed expenses brings the total to $4,064,000.00, which will generate a small Net Profit of $1,085,320.00. Although expanding Strike Roach Ender to 19 cities can be profitable, the potential losses Zoecon could take from an effective advertising and promotion strategy for this venture far exceed the potential rewards. The $4,064,000.00 would not be sufficient enough advertising to gain a significant market share in all 19 cities over a substantial amount of time. The general “rule of thumb” approach is more accurately what would be spent for the new Strike Roach Ender product, in which case a major loss would be taken, making this venture not financially feasible.

One of the major benefits of expansion is the reduction of fixed cost (fixed and selling). The cost is absorbed by 85,000 units instead of 80,000 units resulting in saving of $0.42 per unit.

1. Is Coconut’s February 1, 2012, arrangement with Buffett within the scope of ASC 985-605?

Answer: It seems like Bridgeton and its consultants assumed that the savings from outsourcing those two products would be 435% of the direct labor dollar cost for those products - calculated amount $53,496.

Chick-fil-A is known for their famous Chick-fil-A sandwich, but also for their private, family –controlled ownership structure, philosophy on management and biblical principles. Chick-fil-A uses the differentiation strategy to set them apart from other fast-food chains. Chick-fil-A mission was “To glorify God by being faithful steward of all that is entrusted to us and to have a positive attitude influence on all who come in contact with Chick-fil-A”, and to be “America’s best quick-serve restaurant.” One of their strategies they use to set them apart was focusing on people. This strategy included interview process, golden rule, consistent

1. What is the competitive situation faced by Wilkerson? The critical product in term of market competition is the pumps of Wilkerson Company. The pumps are Wilkersons major product line with a production of about 12,500 units per month. Pumps currently have the lowest gross margin among all products, because competitors had been reducing prices on pumps and Wilkerson adopted its prices in order to remain competitive and to maintain the volume. 2. Given some apparent problems with Wilkersons cost system, should executives abandon overhead assignment to products entirely by adopting a contribution margin approach in which manufacturing overhead is treated as a period expense? Our conclusion is, that they should not adopt

Outsourcing is an external provision between a company and another enterprise. The other enterprise is employed to deliver either goods or a service that was previously managed internally (Kakabadse & Kakabadse, 2000). To reduce high overheads John Crane Flexibox have decided to outsource the maintenance and vehicle hire. The company believes that outsourcing the job to specialists will cost less that retaining the job internally. This essay will look at both the reasons for and against John Crane Flexibox outsourcing these services.

ML had developed a policy of selling manual machines and renting automatic machines. Manual machines did not cost much, did not require service, and could be modified to attach different fasteners inexpensively. Automatic machines were rented on an annual basis because they would have been more expensive to sell and it provided annual income to ML. However, about 700 of the rented machines were returned each year. During the time that machines were in inventory, ML would modify the machines to attach different fasteners. This was expensive with an average cost per modification of $2000. If all 700 machines were modified during a given year this would have cost $1.4 million per year. It was also industry practice to provide preventative maintenance and

With a margin of $121.19 for existing equipment the break-even volume would be 214 units per month. For the permanent tooling equipment the margin is $56.60 which has a break-even volume of 185 units per month (Exhibit 4). Both break-even volume numbers are within CMI manufacturing capabilities. To increase CMI unit production capability equipment at a cost of $75,000 per 250 units could be purchased.

Without question Precision Worldwide Inc. needs to break into the plastic ring market. Addressing the sunk costs is a concern of Hans Thorborg. It is believed that the dilemma to sacrifice the inventory of steel and steel rings, and to produce the plastic rings or wait until the inventory is lowered to go with the new produce line of plastic rings is a two part dilemma. First PWI could lose the edge they have over competitors with introduction of the plastic ring, second by missing out on the lower cost of manufacturing the plastic ring.

The company owns 25 plants for manufacturing with an output capacity of 20.000 pants per week. However, this production is not enough to satisfy the demand on the market. As a result of that, the company decided to employ independent manufacturers. Last year, these contractors produced one third of the total sales.

After analyzing the need and deciding to outsource the production, the company needs to determine whether to use single sourcing or multiple sourcing (Ghodsypour and O’Brien, 2001). This is also argued by van Weele (2005:49) who talks about turnkey and partial outsourcing. Further on the terms used are single and multiple sourcing. In single sourcing the company believes that their entire demand can be met by one single supplier and they simply have to choose the best one (Cho and Ting, 2008:117). In multiple sourcing the company assumes that one supplier can’t meet all requirements and they therefore need to have many suppliers fulfilling each other’s shortages (Cho and Ting, 2008:117). Besides these two strategies there are dual and parallel sourcing (power point presentation lecture 25.9.2009). Dual sourcing is when you have two suppliers delivering the same product and parallel sourcing is when one supplier delivers product X,

Lastly, we have the alternative of switching from lean manufacturing to contract manufacturing. This would help CFI develop economies of scale and receive fixed income or stable inflow of revenues. Because of this, it will be able to better allocate its resources and might even reduce labor costs as it would generally need less workers. CFI can also use its excess capacity to cater to other customers or work on other products. However, this can also be a factor against them because Orleans might be reluctant to have it as a contract manufacturer thus increasing the risk of CFI being replaced by a Mexican supplier. In addition to that, this alternative also comes with termination costs and decrease in competitive advantage.