Case summary:
RM Company is one of 10 largest power-boat manufacturers in US Country. They achieve their mission of providing luxury boats to worldwide customers through their approach of differentiation. The sales increase in the states indicates that the strategy is working.
RM Company is involved in continuous innovation with the help of computer-aided designing, high-quality molds and their constant monitoring for quality. RM Company also closely interacts with its suppliers to ensure that the supplier parts are also of good quality.
Their product line is 22 boats ranging from 19 feet to 44 feet-long boats. TK Person, the VP of the company says “We build boats” but we are in the ‘fun’ business. He states that the competition is not limited to the other 300 competitors but also other family entertainment like home theaters, internet, and so forth.
RM Company has also joined the American Boat Builders Association. They are able to sustain their position in the market with the economies of scope approach in procurement.
Want to see the full answer?
Check out a sample textbook solutionChapter 2 Solutions
Mylab Operations Management With Pearson Etext -- Access Card -- For Operations Management: Sustainability And Supply Chain Management (13th Edition)
- Review the following hypothetical scenario and answer the following question: For our upcoming executive retreat, the Strategy Group has been tasked with competing a strategic analysis of our business and our industry. While there are a number of different approaches that we can take, I would like to rely on Porter’s “five forces” framework for our analysis of the industry structure. Q: Please provide an outline of each of the five forces as it relates to the cable industry and whether conditions in the industry are favorable to long-term profitability.arrow_forwardDistinguish between grand strategy horizontal integration and vertical integration.arrow_forwardDetermine KPLC's (kenya power and Lightning) critical success factors and weigh them to reflect their importance to the firm's successarrow_forward
- Define the terms mission and strategy and explain why they are importantarrow_forwardMajor changes in the External environment of a hotel or tourism organization company may affect the long term strategy of that business. Evaluate ONE (1) recent major change that has affected the long term strategy of the hotel or tourism businesses and HOW it has changed the long term strategy.arrow_forward) Caravan Engineering is a leading global manufacturer of brake shoes. As competitors started catching up, the firm instituted a value analysis program, came up with new drawings and specifications for its brake shoe components, and selected suppliers (from a worldwide pool of 1000 suppliers) who offered the best price. The firm also embarked on a business process reengineering (BPR) program and identified new sets of core competencies in marketing, product innovation, assembly, and supply management. The supply management function was revamped and a chief supply officer (CSO) position created. The CPO was made part of the executive committee thus allowing for a tight alignment of supply strategies with the firm’s corporate strategy. Over the next year, the CFO was able to reduce the worldwide supply base from 1000 suppliers to 50 suppliers, build relationships with them through long-term contracts, training, certification, and involving them from the design stage. The results of this…arrow_forward
- Discuss the following for Ryanair airline: Explain its strategy and how 3–4 of the firm's activities were or weren't aligned with it. Then, describe one external threat to the sustainability of the strategy, and explain how the company failed or succeeded in defending against that threat.arrow_forwardOutsourcing is a popular business strategy involving hiring third-party services for customer support, payroll management, and software development. While it can increase cost savings and productivity, it has some problems that need to be addressed.Critically evaluate 10 difficulties encountered with outsourcing and propose solutions to the issues raised.arrow_forwardExplain what is meant by the term ‘blue ocean strategy’ (Kim and Mauborgne, 2005) and discuss the extent to which this type of strategy is sustainable for the medium to long term survival of a business. Use examplesarrow_forward
- Caravan Engineering is a leading global manufacturer of brake shoes. As competitors started catching up, the firm instituted a value analysis program, came up with new drawings and specifications for its brake shoe components, and selected suppliers (from a worldwide pool of 1000 suppliers) who offered the best price. The firm also embarked on a business process reengineering (BPR) program and identified new sets of core competencies in marketing, product innovation, assembly, and supply management. The supply management function was revamped and a chief supply officer (CSO) position created. The CPO was made part of the executive committee thus allowing for a tight alignment of supply strategies with the firm’s corporate strategy. Over the next year, the CFO was able to reduce the worldwide supply base from 1000 suppliers to 50 suppliers, build relationships with them through long-term contracts, training, certification, and involving them from the design stage. The results of this…arrow_forwardIn its supply chain, how does Darden Restaurants, as defined in the Global Company Profile, gain a competitive advantage?arrow_forwardCaravan Engineering is a leading global manufacturer of brake shoes. As competitors started catching up, the firm instituted a value analysis program, came up with new drawings and specifications for its brake shoe components, and selected suppliers (from a worldwide pool of 1000 suppliers) who offered the best price. The firm also embarked on a business process reengineering (BPR) program and identified new sets of core competencies in marketing, product innovation, assembly, and supply management. The supply management function was revamped and a chief supply officer (CSO) position created. The CPO was made part of the executive committee thus allowing for a tight alignment of supply strategies with the firm’s corporate strategy. Over the next year, the CFO was able to reduce the worldwide supply base from 1000 suppliers to 50 suppliers, build relationships with them through long-term contracts, training, certification, and involving them from the design stage. The results of this…arrow_forward