Case 7-4 Aloha Products

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Case 7-4 ADM 4345 M Aloha Products Table of COntents Table of COntents 2 background information 3 the problem 4 related theory 5 Porter’s five forces 5 mintzberg’s five pS 8 Plan 8 Ploy 8 Pattern 8 Position 8 Perspective 8 swot analysis 9 strengths 9 weaknesses 9 Opportunities 10 threats 10 Purchasing department 10 alternatives 11 recommendations 11 sales and marketing department 11 sales 11 Alternatives 11 recommendations 12 marketing 12 Alternatives 12 recommendations 13 plant operations department 13 Alternatives 13 recommendations 13 conclusion 14 Appendices 15 background information Founded in 1910 and based out of Columbus, Ohio, Aloha Products manufactures coffee to Midwestern and Middle Atlantic. Manufacturing included roasting, grinding, packaging and delivering to the customer the coffee. In 1994, the company recorded sales of $150 million. The sales policies of Aloha Products were defined by the vice-president of sales and his 2 assistants. The advertising and promotional decisions were determined by the company president and the vice-president of sales. The bonuses of the manufacturing plant manager’s is a percentage of its plant’s gross margin calculated by corporate office. They also established monthly production schedules for each plant. The purchasing unit, located in New York City for the constant contact with coffee brokers, handles all the purchasing, sales to outsiders, and transfers to manufacturing plants. The operating cost of the purchasing unit was considered an overhead cost and charged directly to the corporate office. the problem There is a major problem in having a centralised control system in that the individual plant managers (i.e. Lisa Anderson) have little or no control over any of the major activities that are performed in their respective production facilities. For example, the purchasing of

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