Jeff Styles started a small growing business called Data Tech, Inc. out of his two-car garage. Data Tech, Inc. is a company that specializes in transferring hard copies of various business documents onto CDs . The company started out with anywhere from 10,000-30,000 pieces of mail daily, which proposed a challenge as business continued to flourish. Since he has accumulated an increasing number of corporate customers with long-term contracts, Styles has realized that his two-car garage is now an insufficient space to accommodate the newly acquired business. It has become essential for Styles to expand his facility in order to meet demands. The issue for Styles to decide between three different factory locations each with different pros and cons. Furthermore, he must decide on whether to invest in a large facility or a small facility with the possibility of expansion in the future. Ranging from most important to least, there were several factors Styles took into consideration when deciding which location was the right fit for Data Tech, Inc.. Some of the influential factors included proximity to the airport, proximity to postal service, facility with excess capacity, facility with potential for expansion, close to business community, and a pleasant environment. A location near the airport is crucially important to Styles due to his need to travel to various customer locations. Seeing as Data Tech, Inc. receives numerous amounts of packages daily, a location near a postal
1) Issue – The team wants to develop new ventures and wants to keep it in house. They realize that everyone has things that they are working on. They start thinking of pulling warehouse staff to assist with order fulfillment, but right away Maria says no that it is not cost efficient to outfit them with new hardware. The
Challenge two: Inventory/Shipping: Shipping and receiving are sharing facilities due to one railroad spur being available. The company is having problems producing enough products for the customers. This lack of production cause large quantities of finished materials to be stored
The company also should consider other factors in choosing the location of the plant including:
Smith’s Information Services is in the process of implementing a corporate overhead reduction program. This is due in part to the increasing costs of operating and maintaining an in-house data center, as well as flattened sales and reduced profits. For these reasons Smith’s Information Services is looking to outsource the company’s data center to an outside vendor. The increasing overhead costs include personnel costs to operate and maintain the data center’s servers, data center cooling costs, and electrical utility costs required to run the data center. Reducing these overhead costs, by outsourcing the data center, will help Smith’s Information
Martin Smith is newly employed in Greenlane Group, a top venture firm. Mr. Weatherstorm, his senior partner gave him three proposals to assess and evaluate. Martin’s task was to make a presentation about the advantages of the three data communication companies and come up with a credible recommendation on which of the proposals should Greenlane Group choose?
One of America’s largest forest products/paper firms with sales of $6.5Billion in 1983 and a net income of $105 million. The case study revolves around Atlantic Corporation’s intention to add linerboard capacity. In order to achieve this goal, they started looking at viable solutions, including purchasing and acquiring mill and box plants instead of through construction and fabrication of new plants and equipment. This included the possible acquisition of Royal Paper’s “crown jewels”, that is, the Monticello mill and the corrugated box plants.
As shown in the Exhibit, a rather simple but detailed decision tree has been made which represents the various options for George. The financial outcomes for the three different amounts of t-shirts that he can provide are presented in tabular form, in the Appendix. Table 1 shows profit outcomes for ordering 5000 shirts, Table 2 shows profit outcomes for
Place: Loctite should expand their distribution network. Currently they only have about 71 general distributors (285*.25 from p. 4) and 43 specialty distributors (285*.15 from p. 4). One of Loctite’s main objectives is to expand their market share to 35% in the SIC industries (20-39). So they should partner with distributors that specialize in the SIC industries (20-39). They should first partner with distributors that specialize in industries with the largest instant adhesive usage. This means that Loctite should first find distributors in the metal products, machinery (33-35) and electrical (36) industries because they use the most instant adhesives. There are about 15,070 instant adhesive users in the (33-35) industry (102,523*.147 from Exhibit 1). Loctite will want to research what a good end-user company to distributor ratio is in that industry then use that to find how many distributors they want to partner with. I am going to assume Loctite should use one distributor for every 100 end-user companies and that Loctite wants to
4) Location- Decisions about where to locate a store are critical to any retailer’s success. Location decisions are particularly important because of their high cost, long-term commitment and impact on customer patronage. Choosing a particular location type involves evaluating a series of trade-offs. These trade-offs generally include the occupancy cost of location, the pedestrian and vehicle customer traffic associated with the location, the restrictions placed on the store operations by the property managers, and the convince of the location for customers.
It is crucial for a business to know where their customers come from in order to select the best location for the store. Choosing the best geographic area can help in the success of the business or the failure of the business. This is why Trader Joe’s has particular criteria when choosing new store locations. Trader Joe’s is aware who their target consumer is and utilizes the data they receive to place their locations in the areas that will benefit in the growth of the organization.
At every step of the way, Adams evaluates actual cost versus business value to the company of every initiative, whether it involves technology, real estate, or the melding of the two. Because Adams has a programming background, when it comes time for the company to deploy a new system, he can effectively weigh the cost of purchasing software off the shelf against the cost of writing the software code himself or with his IT team. Since 40 percent of 99 Cents Only Stores’ products flow through the inventory only once because they are close-out items, the company’s systems need to be very flexible to deal with unique nonrepeating items in inventory. Given these parameters, Adams often finds that the cost of buying prepackaged software combined with the time and cost required to customize such software for the deep-discount business makes programming the company’s systems in-house the better option.
After evaluating capacity, Team A turned our attention towards an analysis of the throughput time of the Littlefield factory to determine the optimum customer contract to offer. During the first 50 days, Littlefield management elected to accept purchase orders with a quoted lead time of 7 days at a price of $750. Littlefield was able to obtain 100% expected revenue during the first 50 days of operations and averaged a throughput time of 1.64 days (St Dev: 0.91). In order to increase the overall profitability, Littlefield can increase
A company’s location is a very important factor. Location is a key component to a successful and profitable organization. When considering a location for a gas station it is important that buyer considers the demand. The buyer must take into consideration the customers wants and needs and all possible competition. Accessibility and neighborhood location is also a determining factor. Fox example immediate accessibility would a benefit for a gas station that is near an express way or highway.
The company has to decide between the two locations based on their virtues, availability and higher margin of profit.
Place – Place is also very important in the terms of business because before opening the business they should consider the location properly that are they targeting the proper market according to their business. Place must be easy accessible for customers, suppliers etc.