Caladonia Products Integrative Problem A company’s success depends on countless aspects that management must consider thoroughly before making any decisions. Each decision has the possibility to generate a profit or unfortunately, a loss. For instance, Caladonia Products has a decision to make; it has to choose between two mutually exclusive projects. There are several questions that Caladonia’s financial personnel should ask themselves prior to making any decisions. More specifically, Caladonia’s financial personnel should determine the payback period of each project, the internal rate of return (IRR), the new present value (NPV), if any ranking conflict exists, and then decide which project should be accepted and why.
A project refers to a group of related projects managed in a coordinating way to obtain management and control that would not be available if managing them independently. Program management can be viewed as a centralized management for a previouslyy coordinated groups of projects, all aimed towards achieving the companys objective. Strategic portfolio management relates to project management because, a portfolio is part of the boundary between the program and strategic business objective of the company. A portfoilo and project manager is to deliver benefits by executing a network of projects. Both define success by meeting boradly defined objectives, and usually ensuring benefits are felt by stakeholders.
The assessment of this case study, in conjunction with arriving to an appropriate cost for materials and freight, will help determine the recommended best course of action for Precision Worldwide, Inc. and Hans Thorborg in deciding the preferred product for the organization. Key Issues and Problems Precision Worldwide, Inc. (PWI) is faced with a business decision that will potentially affect the organization’s continuity and profitability. The organization recently held meetings to discuss the introduction of a substitute product into the marketplace by a competitor. In making a business decision to ensure the ongoing future of the organization, the key issues and problems need to be outlined to provide certainty that all issues and problems are addressed to facilitate a sound recommendation to the organization. * Disproportionate level of steel ring inventory compared to demand PWI currently has a large quantity of steel rings and specialized steel in inventory in excess of
Lessons learned from this topic and case study: 1. Managers need to be able to estimate the costs of different responsibility centres and products to assist with monitoring the performance of different departments and also to assist with decision making about product pricing, profitability of individual products, assist with decisions when making changes to product lines and various other managerial requirements such as controlling costs and valuing inventory for financial statements. 2. Dividing the business into cost objects such as departments or products can assist with creating greater accuracy when allocating costs to each ‘cost object’. 3.
it allowed to incorporate any changes required in the implementation schedule While considering whether to implement ERP in stages or big-bang, there are some factors which Tektronix looked at. They were: * Urgency of implementation- When the deadline for implementation and going live is critical, a big-bang approach is more suitable * Risk involved- Companies with an appetite for high risk can go in for a big-bang implementation * Prior experience of such implementation- If the firm has no such experience, phased implementation is more feasible 2. How did Tektronix manage the risks of ERP implementation? * Implemented single-vendor, tried-and-tested ERP package instead of developing it in-house * Phased implementation of ERP mitigated risk as compared to big-bang approach * Consultants who were well-versed with Oracle were called in. Ex: Aris Consulting and Oracle itself * Business processes were reengineered to suit the
According to Sims, it is important to understand how consumers treat the purchase decisions they face. If a company is targeting customers who feel a purchase decision is difficult, their marketing strategy may vary greatly from a company targeting customers who view the purchase decision as routine. In fact, the same company may face both situations at the same time; for some customers the product is new, while other customers see the purchase as routine. The implication buying behavior for marketers is that different buying situations require different marketing efforts. Many professionals today are asked to influence in situations where they formal authority.
This alternative requires consideration of the opportunity cost of eliminating in-house production of the finished coating. While Guillermo may be engaging in self-interested behavior, the owner must consider that each financial transaction has at least two sides. Sellers will also be acting in their own financial interest. Therefore, decisions regarding making or buying certain products hinges on a detailed financial cost analysis. Guillermo’s analysis also highlighted competitors’ actions regarding industry changes.
There is, however, a difference between management and leadership. Which is more effective for efficient and effective supply management? First of all the Purchasing or Materials Management division of a company must align its objective to the organization’s objective. Supply Management professionals must be involved from the start in the development of the company’s business plan to represent the customers’ potential issues. Also, any changes to the business plan will need supply management’s assistance to implement the changes successfully.
They perform these tasks with different emphasis according to their functional specialism and level in the hierarchy." (James C 2008, p.356) The project manager has a lot of roles to undertake when it comes to a building a new team and starting on a new projects however this can differ from company to company. The role of a project manager is very simple and straight forward job. With project managers they will have combinations of skills like the ability to ask penetrating questions, identify unstated assumptions and resolve conflicts and more skills which I will include later on. One of the important keys when it comes to the project managers duties is to recognize the risks that will impact the likelihood of the success of the project and that the risk is formally and informally measured throughout the duration of the project.
It needs to forecast in a realistic figures and attainable goal. In a organization, it will split up the budget between different areas such as sales and operating, production on variable or fixed cost to spend, marketing, human resource on knowing the number of employee to hire etc. Budget must be revised periodically, as when the business moves along with the economic and environmental change. So a budget must also adapt changes whenever required. If without the planning of a budget, the company may easily over spending on the cost.