Question
solve this case study
never mind the crossed red line its supposed to be included
Cases in Engineering Economy 2nd by Peterson&Eschenbach; Mr Hill agrecd"I sce no reason why we should not bid on this proposal Of course, as John pointed out, we will need new production capability. While this RFP calls for a five year delivery plan, the total number of parts has not been specified. Since Simkins believes the data will be available before the final proposal deadline. I suggest thal we examine the cconomics of the various different manufacturing alternativcs. To that end, I intend to havc Hlroy herc start that study immediatcly Mr. Barnes ended the meeling with, "I'm sure that nol biddin won'l hurt our other business with them. but they have been a steady customer since my fathe started the company and I really would like to help them. Besides, whenever we have added new manufacturing capacity, Simkins has managed to sell it to somconc. So whatever you do, Hill don't let Elroy be too pessimistic. I.ct's get on with it cxpect a preliminary cvaluation in two wecks, By the way, John, dont forgct about all that extra cquipment we have stored from the old plant. You may find something there that will help keep the cost down. During the next several days, Elroy met several times with Mr. Hill and John Blackburn John, who had joined the company after it moved, drove to a warehouse in Atlanta to inspect the stored eqiment. In a meeting Wednesday, John said that only a new engine lathe would be required Hill said, "If that's all we need to bid this job, Mr. Barnes will be very pleased. Afler all, We can probably find one in that price range, Mr. Hill" John said, "but if we are going to consider this as a long-term investment that Mr. Simkins will market for us, I think we should seriously consider one of the automated systems that have become available in the past few years. Remember, this type of equiment usually lasts a long time. I am sure that it will still be serviceable long after we complete this contract" "OK, John, your point is well made," Mr. Hill replied. "Elroy see what you can find that will do the job. Check with John on the specs, but take a close look at the economics for us." During the next few days, Elroy found that there were basically four different possible machine types that would do the job ranging from the traditional manual engine lathe to a computer-controlled lathe with robotic load/unload and tolerance checks. From the manufacturers, he obtained the information contained in Table 10-1 Case 10 The C
Explanation / Answer
1. Does your selected business have differentiated products or services? If so, what is the basis for this differentiation from the competition?
Yes, they have unique product, it is differentiated through processing of meats and quicker delivery services . This is realized due to its
.Processing plants
.Volume of supply capability
.Great supply chain network
It produces several different products, like Buffalo wings, boneless Buffalo wings and is an innovator in the industry.
2. Does your firm have a cost-leadership position in this business? If so, can you identify which cost drivers it uses effectively to hold this position?
They do not have acost-leadership position, but are differentiated due to their range of products, service and volume of operations.
And it has its own chicke and meat producers, to facilitate the volume business, without being a cost leader.
3. What is your firm’s approach to the market? If it segments the market, identify the scope of competition it is using.
It does not segment its market. It works on B2B business, and approaches the blanket way.It supplies products to each type of food outlets, and generally depends on the large contracts and partnerships.
They supply to all type of restaurants.
They sell at supermarkets.
It supplies to Prisons as well.
So by ditributing to multiple channels they target a large spectru of markets, though there is partnerships based on segments its mostly to most frequented restaurant chains.
