In the past several years, due to trade sanctions and increasingly opened opportunities in the global market, it has become increasingly unproductive for the custom bicycle companies to produce and compete within America, where cars are utilized for more consistently than bicycles and the obesity epidemic climbs every year. While pockets of the American population show interest in utilizing the more customized aspects of athletic activity, most Americans do not have the income or necessity to invest in customized bicycles, making it unprofitable to continue to pursue production and sales solely in America. Bearing this in mind it would be prudent to endeavor in outsourcing manufacturing positions and pursuing efforts to further establish …show more content…
Aside from being the most advanced industrial manufacturing nations in Europe, a benefit of outsourcing the manufacturing of the bicycle parts to Germany through a third-party organization would be their working knowledge of the inner-workings of the European Union industrial standards; and likely a means of bridging the language differences between the Custom-Bicycle Company’s executives and its potential German affiliates (China-Germany Economic Cooperation on Fast Track). Further, the past several years have witnessed a monumental influx of migrants and refugees to western Europe; predominantly in Germany and Sweden (Osborne, S.). By Outsourcing manufacturing work to Germany, this would provide employment opportunities for the migrants which would assist in helping them assimilate and become productive contributors in the German economy, thereby lessening the strain their sudden presence created(Osborne, S.).
One of the only foreseeable disadvantages of this plan is the lack of direct control the Custom-Bicycle Company would maintain over the manufacturing aspects of their products. By Outsourcing manufacturing to a third-party, the company must trust the quality of the products being produced and the integrity of the unknown, unaffiliated, workers to do their jobs with a consistent efficiency. The risk the company takes on when outsourcing beyond their
Multiple alternatives have surfaced for Kootenay including facility expansion, financing and channel distribution. These opportunities can assist Kootenay to address the growing demand in Canada and North American for high-quality customized frame bicycle market.
Decision Making. Company S can motivate scooter dealerships as intermediaries by involving them in the decision making process. Company S is the producer, so the company should include the dealership in any decision regarding how the product is distributed to their stores, or to the customers. An advantage is the dealership feels a strong sense of ownership in the sales results or responsibility to the company. Another advantage would be that Company S would have a closer involvement with consumer preferences or needs, allowing the company to make better decisions and possibly save money. A disadvantage for Company S would be the exposure to the competition. Company S would be revealing confidential information to dealerships that have previous ties with the competition. There are documents to help protect Company S from a dealership leaking information to the competition, but that does not mean it won’t happen; and once the information is out, it cannot be undone.
The delay rate in the production will be decreased by outsourcing the assembly fuction near the supplier of the parts.
The Theory of Constraints indicates that excess capacity from ‘subordinate’ departments should be utilized to lessen the strain on the bottlenecked department. Until the constraint on production has been removed management should subordinate everything else to the constraint. The proposed action of outsourcing inspection from the coating and sharpening department will free-up more valuable direct labor hours in the area of constraint. A separate inspection station before the final stage of production should be added to the production process. An employee from the chemical bathing stage will be cross-trained to inspect products as needed for the brief periods of inspection required. Because the second process has been deemed subordinate to the area experiencing constraint its excess capacity can be utilized in a more valuable capacity. Each additional hour in the coating and sharpening process will result in a firm benefit of $1250, or the contribution margin per unit of constraint for the Model C210. The addition of an inspection
our business. As the president and the CEO of Bikes Bikes Bikes, I am proud to present to you the
Going into 2004, Bob Moyer planned to produce 10,000 bicycles at Mile High Cycles. Construction of his bicycles includes the utilization of three departments, frames, wheel assembly, and final assembly. During this year, Mile High Cycles ended up actually producing 10,800 bicycles to meet higher than expected demand. Bob is curious as to whether or not he was successful in maintaining costs to meet these higher levels of demand.
Selection of outside suppliers at the initial stage was crucial. Three advantages would benefit from authorized supplier involvement in design and production process. Firstly, they could foresee major problems in the design cycle by pulling their expertise and methodologies. Secondly, this model embedded quality into BMW’s production system up and down the supply chain. Thirdly, supplier was able to realize the critical connection between quality and profit through high customer satisfaction.
We should consider this trade-off from ECCO case, between in-house production and outsourcing when faced with cost uncertainty and competition with a rival manufacturer in a differentiated goods market. When the management decides on selecting organizational forms, technological uncertainty on production activities often ensues. Thus, a manufacturer faces uncertainty when choosing between in-house production and outsourcing. Moreover, because almost all modern firms are in a competitive position, they have to choose organizational forms and take the
Since Harley Davison Motor Company started in 1903, they have been successfully “taking the work out of bicycling” better than any other motorcycle manufacturing company. They have experienced great success recently with growing numbers in their percentage of motorcycles shipped, up 14 percent from 1997, and their target market size, up 13.8 percent from 1997. Their brand has also grown so strong over the years that customers are willing to wait up to two years for a motorcycle. The problems that Harley Davison is faced with are how to improve their existing purchasing process, how to integrate their existing procurement methods together, and how to develop longer term
If Schwinn is able to successfully market mountain biking as truly American than "Made in America" will positively impact consumer purchasing. As with automotive purchases, consumers of bicycles are driven to purchase the product that best meets their needs. Country of origin matters greatly when the quality is lacking. Schwinn will need to market American made the whole time knowing most of their bicycle frames are made outside of America.
This marketing plan examines the launch of a human-electric hybrid bicycle called e-bike by the world’s largest motorcycle manufacturing company HONDA, in China.
Starting from a company of less than 75 workers and owning less than 20,000 SCU for production, research, quality assurance and conduct warranty work Off The Chain Bikes has doubled the plant capacity and hearing doubling the workforce within two short years. The company is successful by targeting and capturing lucrative market shares by heavily investing in the desired technical specs and design styles of one of the most influential Racing bikes. Our keen ability to thoroughly research market demands, predicting competitive strategies between the four market majority shareholders by reviewing and interpreting the marketing reports and our aggressive design and development plans have significantly increased our market share and increase shareholder value. Our core competencies and strategic goals will be realized by carefully following our established plans and aggressively price our bikes to increase total market share.
Outsourced almost 87% of production activities involving spare parts while maintaining core competencies like R&D, design, quality control and key trademark
The other solution of the third problem is why the company needs to decide and find appropriate suppliers in different product? Deer & John planned to make their own facility and start producing their own product. The company wants to take back design and manufacturing of skid steer loader from the company who
Germany is quite accepting of immigrants and they are very welcoming. Germany has the second largest immigrant population in Europe, United Kingdom is the largest. Immigrants have contributed greatly to the prosperity of the German economy. A representative study shows that “foreign workers in Germany significantly contribute to the Bundesrepublik’s prosperity” (Lorenz, 2017). At any rate, the German economy is suffering from labour shortage and is urgently in need of immigrants to “counter an ageing demographic”. Germany” needs its immigrants to be doing much more than making doner kebabs — it needs them in its banks, its government offices, universities, and IT companies” (Sampath, 2016). Based on data from the OECD and the German statistics office, the study shows that Germany’s cultural diversity happens to be a major contributor to its economic success. Immigrants make up “9.6% of the population and one in five Germans has a migration background. The fact that Germany’s immigration rate is so high only tells half the story though” (Lorenz, 2017). The number of foreign specialists in Germany’s main industries is what really stresses the importance of immigration. Studies have proven that “relatively poor performing Bundesländer, with fewer foreign workers, could positively influence innovation and economic success by attracting talented personnel from abroad” (Lorenz, 2017). Also, as stated by Movinga, “the impressive number of companies with risk capital and the number