Although a fifth Kiwanee dumper was updated last year with the hope of resolving the problem, it was unable to fix them and the overtime costs of the process are still very high. 2. There is a long waiting time for trucks and drivers in queuing to unload process fruit into the receiving plant. Seriously, when the holding bins were full, the waiting time could be up to several hours. This has upset the growers since the wages of a truck and drives are up to $100 per hour.
To try to increase our brand awareness we increased our advertising for each brand to help improve our image for our target markets. Another contributing factor to our underperformance was our over production, we over produced SOLD and SONO starting out at a production level of $900,000 for SOLD and $100,000 for SONO. Regrettably this caused us to have excess inventory for both brands. By period four our inventory holing cost were extremely higher than the other firms our inventory holing cost was $1,059K for our firm O, compared to $74K for firm I. figure 1 has the comparison of the four firms inventory holding cost by a cumulative time scale. The customer perception of our bands was a problem for us, we were unable to position our brands right in order to make our
Question 1. Identify 3 inherent risks of Wesfarmers. I. Nature of entity’s business: * Wesfarmers main business is retail. This increases the inherent risk: * There could be problems like slow moving inventory for Target, Kmart or Officeworks * Also consumer preferences and tastes change frequently so this also increases the risk for slow moving stock * There are a lot of cash dealings.
Prior to polices established by Law of Commerce Henkel Iberica participated in aggressive pricing to increase market share. The consequences of this were a negative effect on margins, contribution margins, and profits on sales. To contend with its competitors, Henkel invested in promotions and additional product mix to increase sales, but due to lack of accuracy in long range forecast it was often left with either over stock that is difficult to reallocate or loss of sales due to out of stock products which eventually led to a decrease of net earnings in sales year before. Accurately forecasting demand is the key to every strategic, tactical, and operational decision designed to keep our business competitive. Obviously it is evident that Henkel Iberica current process isn’t working due to challenges of forecast exactness and demand variability for all the products it offers.
In 2005, the plant’s overtime costs were high and the trucks spent too much time waiting to unload the process fruit onto the dumpers. The reason was that the plant could process less fruit than it received resulting in holding bins that were always full leading to long waiting time for the trucks. Also, because of the increase in water harvesting of the cranberries, new schedules for operations had to be drawn up. Another issue was the grade selection of the berries. Half the grade 3 berries were actually grade 2B resulting in revenue and time loss.
This was not helped by the fact there were 8 storms in just 2 months.Also, over 407 years there have been 4 major floods, the frequency being 101.5 years per flood. Flood recurrence is totally random and they can only be predicted based on historical data. This means there are no warnings for a flood, so people must be prepared at all times. This can sometimes be impossible and cost a lot of money to keep flood defences. Flat land over the levels meant water couldn’t be quickly taken away, meaning the depth of the flood increased largely.
This in turn further delayed the implementation of their regional and centralized inventory management system delay by ten months. Now Captiva is faced with inconsistency in their standards for operating, and their regional and centralized management system is performing poorly. This includes having major discrepancies within their inventory management system. Captiva Conglomerate has gone over budget for an operating platform that is more of nightmare than a help to its business. Lastly, the contract was written in a manner where if would be very difficult for Captiva to sue SOS.
They both were diverse in their management style; Fisher trying to instill a new culture into the newly created division of Sales and Marketing whereas Greenhill leading the investment banking division in his old and conservative style, (b) The company was expanding rapidly and was split into ten divisions with each division focusing only on the divisional goals and profit rather than unified goals and profit motives for the entire organization, (c) Rapid growth and globalization of the company with lack of adequate managerial personnel placed unavoidable stress on the existing managers., (d) changes in working culture especially in the top level management was very tough. To change the company motto of “each on his own” to the newly adopted motto of “one-firm firm” by believing in a common good was not an easy task to achieve, (e) There were long delay in making decisions due to the in fight between Fisher and Greenhill, and (f) Instill a new attitude of interacting with different divisions within the company and even giving up profit of one division for the betterment of entity as a whole. 2. Assess John Mack’s vision for Morgan Stanley. What are the key elements?
Deliveries crucial and overstock not tolerated by customer. Expected to grow the most Problems * Although they operate in 3 market segments they manufacture in one: High end customised products are manufactured alongside standard units. * Labour problems caused by paying staff on a piece work basis thus they would rather work on certain items. * Bottle necks are evident at the “handful of very expensive machines” * Meetings on meetings * 100 000 different products * Deliveries are late * Simpson was stressed , personal and work related * Had spent money on MIS system but not changed Organization and process * Large stock holding * No cross departmental communication, matrix * Large amounts of rework look at why it has to be reworked than checking. * “Sales action “groups Process from order to deliver Receive and process order Engineering drawings INSP Manufacture Hose Manufacture Fitting Outsourced INSP INSP INSP Assembly INSP Deliver TO DO * Looking at the flow diagram there are numerous inspection points that send +-25% of work back.
Issues at Infosys: The issues faced by Infosys in the financial year 2013-14 were no material revival in discretionary spending (approximately 40% of revenues from the segment), poor targeting and positioning, and smaller scale in cost efficiency segments driving growth like infrastructure management services and business process outsourcing against competition and continuing margin stress from rapid increase in cost and pricing flexibility. Along with these issues, Infosys also encountered some internal issues. These are sales, customer network and cost structure. Infosys stock indicated high volatility around earnings in that period. In the past result seasons, the stock value moved significantly on the result day.