Managers need to be careful of overpricing or under-pricing goods due to allocation of costs to each product. As was shown with the Wilkerson case on further analysis of costs using the activity based costing method the company had been under-pricing some goods while over pricing others. This was affecting their profits and their ability to make sound business decisions on the pricing of products to meet market demands. 6. Activity based costing is more complex to use however used correctly should improve the accuracy of allocating indirect costs to cost objects.
The challenges for the distributor were observed to surround visibility and forecasting. Visibility issues arise due to the distributor’s inability to decide on the appropriate product mix to be shipped and the uncertainty in predicting the consumers’ impulsive buying behaviour. Forecasting issues, on the other hand, relate to stockouts or piling up of excess inventory, in addition to errors in predicting demand. The retailer grapples with visibility issues as well. Improper maintenance of stock and stacking below the eye-level on store shelves make the products – Livon, Set Wet and Zatak – less visible than their ‘rivals’ in the respective product segments.
According to Sue Purdum, he has to reduce his cost-of-sales and / or improve his level of customer service to add more value to his customers. Transportation from SAB’s warehouse to its customer stores is a major part of its cost-of-sales. Also, our ability to deliver customer’s orders in a timely and reliable manner impacts significantly SAB’s customer service. Sue Purdum would like our senior management team to consider what we could do to help SAB remain competitive and improves
If the company ceases to manufacture some products required by those big customers in order to decrease the inventory and cut off the cost, the company may lose contract with those important customers. Another problem confronting the company is that some medium and small-sized customers complained that there are insufficient products to be shipped. So, the dilemma comes out. The company has big inventory stored, meanwhile some customers always complains about the lack of products. One major reason is that the company always keeps the not-updated information and thus the improper inventory.
The changes are causing the Managers and Associates to feel they are not be valued, and this could potential cause a loss of talent to competitors. In the economy we have today, the company is risking the
This is an immediate problem for the franchise as this is negatively affecting the morale of the employees and is in conflict with the strategic direction of the organization (i.e. reduce unsold/damage food percentage to drive profitability). Data Analysis There are several different situations that have to be analyzed for this case. They are broken down in to two major categories: leadership of the manager and internal structure. Leadership of the Manager How Did the Issue Arise?
When we think of a negative leader that we encountered we want to take a step back and remember the impact. People under negative leadership can suffer dysfunctional for months or years and so as organizations. A futile business is because of the poor performance and it is because of incompetent leadership or negative leadership. Successful companies are successful for different reasons but dysfunctional leadership companies are dysfunctional in the same way (Jones). The Subject of leadership has been greatly described by the many scholars, researchers and authors, but still it’s a challenge to many companies.
Bottlenecks are springing during un-predictable production processes. If this goes on for too long, Custom Molds will lose credibility in front of their customers and some customers may decide to part ways. And the fact that they have still not been able to pin-point the cause is even more devastating. 5. In-efficient testing and inspection process resulting in orders being returned after delivery.
Critical Issues The obvious problems that exist in BTC include staffing and decline in sales. Staffing has become a strenuous issue in the company, since there are many locations that have physical store buildings built but are sitting unstaffed. This problem not only involves in having a high labour demand, but extends to hiring the right employees that meet their standards – which increases the difficulty to meet the labour supply. In addition to that, the company has a high turnover rate due to the constant change in compensation, which consequently results in sales decline in the organization. To summarize, the critical issues with BTC are the following: - High Labour demand - Low Labour (that meets the standard) supply - High turnover rate - Sales decline Analysis Recruitment Staffing the stores, as stated by Nkere Udofia, the vice-chairman of Montreal BTG, is BTG’s most challenging issue.
The next issue is a role of TBTF institutions. Firstly, some businesses that are so large can make up a significant part of an economic sector. So their failure could cause the sector to crash and damage the economy. Secondly, the failure of TBTF companies has the potential to take other businesses down with them, as all companies maintain relationships with partners. When a major source of orders disappears, a