For the exclusive use of M. HUSSAIN
Harvard Business School 9-582-103
Rev. September 24, 1985
Sealed Air Corporation
The president and chief executive officer of Sealed Air Corporation, T. J. Dermot Dunphy, explained the firm’s 25% average annual growth in net sales and net earnings from 1971 to 1980: The company’s history has been characterized by technical accomplishment and market leadership. During the last 10 years we built on our development of the first closed-cell, lightweight cushioning material, introduced the first foam-in-place packaging system, and engineered the first complete solar heating system for swimming pools. We intend to follow the same management guidelines in the 1980s. We intend to seek market leadership
…show more content…
Two GAFCEL salespeople—one full time, the other about half time—had reached a $1 million annual sales rate. Several of AirCap’s distributors had taken on the GAFCEL line. Hauser was preparing to recommend Sealed Air’s reaction to these somewhat unanticipated competitors. The firm could produce an uncoated bubble as cheaply as GAFCEL within a month with no major capital investment; it could run on machines used for another Sealed Air product. If Hauser were to recommend that the historic champion of barrier-coating offer an uncoated bubble, he would have to specify timing, the marketing program for the new product, and any adjustments in policies for AirCap cushioning and Sealed Air’s other products. As Hauser thought about his options, he again flipped through the training manual recently distributed to Sealed Air’s sales force: “How to Sell against Uncoated Bubbles.”
The Protective Packaging Market
The three major use segments of the protective packaging market were: 1. Positioning, blocking, and bracing: These protective materials had to secure large, heavy, usually semirugged items in a container. Typical applications included shipment of motors and computer peripherals. 2. Flexible wraps: These materials came under less pressure per square foot. Applications included glassware, small spare parts, and light medical instruments. 3. Void fill: These
Facts: In 1952 the United States was in a conflict in Korea, and the demand for steel
It is critical for Sealed Air to introduce uncoated product if desire to maintain the market leader’s position, with existing machinery and technology, it would not require extra effort to produce uncoated products but have comparable production costs to competitors. As several distributors has been demanding uncoated products from Sealed Air, it seems reasonable for the company to start producing it, it would increase loyalty from the distributors and allow Sealed Air to have a more complete range of products with affordable prices for high to low-end customers. Sealed Air has already lost some market share and showed signs of continuous decline in the market’s position, uncoated product will be a ticket back into the game, it is likely to
This sourcing strategy report represents the result of our analysis of four potential suppliers both domestic and international in an attempt of the company to outsource many key product components and subassemblies, including the 9000x series DVD drives. The identified suppliers include:
1. Why is Brown Forman considering buying Southern Comfort? In your answer consider the strategic motives of Brown and the arguments in favour of and against the acquisition.
For instance, Canada's federal government has delegated the responsibility for airports to local authorities. As a result, many Canadian airports have transformed into brighter, cleaner, and more modern facilities that have become more expensive to operate 3. Canada’s airports have spent more than $9.5 billion on improvements since 19922. According to the CEO of Transat A.T. Inc, “it costs three times as much for an airline to land in Pearson Airport in Toronto as at Charles-de-Gaulle in Paris” 2. Such high landing fees have made Pearson and other major Canadian airports less desirable landing destinations; increasing costs for airlines, and as a result, often increasing prices for consumers. Pearson Airport is West Jet’s “second-largest hub and main connection point in Eastern Canada” and almost half of its destinations are to Canadian airports2, Such high costs of landing in major Canadian cities require that WestJet finds more ways to cut costs and remain the cost leader in its industry.
The latter has further been exacerbated by a lack of incentives for Metro branches, the main sales and marketing agents for the product, to sell Due Bills.
1. How would you describe Boeing’s approach to project management? What are its strengths and weaknesses?
As long-term valuation is assumed, risk free rate is set as 30-year treasury rate, 5.73%. Cost of debt is 6.72% reflecting Amoco’s credit level. Cost of equity is calculated as 10.63%, leading to final WACC at 8.85% (Chart 1).
As seen in exhibit 2 as well, the company’s unit share and dollar share steadily increased minimally from 2005 to 2007. Unit share increased from 21% to 21.3%, while dollar share increased from 15.7% to 16.1%. Similarly, US sales increased in HPL’s Target Markets for skin care, oral hygiene, personal hygiene, and hand and body care from 2003 to 2007, making the package more appealing to the company. With HPL’s sales into its retail channels increasing from 2003 to 2007, in addition to the increase in sales, label shares, and such aspects as revenue, it is evident that the company’s financial performance for the past few years has been favorable.
Airborne Express the current underdog in the express mail business has been able to compete with market leaders due to innovation and optimization strategy. The company built on cutting cost and emphasizing reliability now faces pressure from the leaders UPS and FedEx to change their pricing strategy. This change from standard rate pricing to distance-based pricing puts Airborne in a dilemma in which they must choose to match the competition which will make them lose what sets them apart in the market or stay with the current strategy. Changing will increase their flexibility and could open them up to new consumers while staying the same
Hanover-Bates Chemical Corporation produces chemicals for the chemical plating industry. It has plants in Los Angeles, Houston, Chicago, and Newark. The production process involves taking chemicals purchased from other suppliers and mixing them into user-based formulas. The Hanover-Bates has a strong balance sheet and trades on the over-the-counter market. There are seven sales districts within the organization with a total of forty sales representatives. Each receives a salary, fringe benefits, and commissions of 0.5 percent of their dollar sales volume up to their sales quota. Field sales efforts are extremely important and quality control is critical with supplying the plater with the
Case Analysis: Blanchard Importing and Distributing Co. Inc. (HBS Case 9 - 673 - 033)
Black & Decker Corporation is a corporation based in Towson, Maryland, United States, that designs and imports power tools and accessories, hardware and home improvement products, and technology based fastening systems.
MediSys planned a launch of IntensCare which is a new remote monitoring system for the use in hospitals’ intense care units. This is a major launch for the company because it is a $20.5 million investment which is the largest investment for the company. MediSys Corporation is facing many external problems along with experiencing problems internally trying to finish the product by the set deadline. The company is having many issues. The issues consist of dealing with the software development, failure to communicate effectively, and lack of motivating factors.
Case Analysis: Blanchard Importing and Distributing Co. Inc. (HBS Case 9 - 673 - 033)