Wilkerson company case study. Wilkerson Company Case Study Solution and Case Analysis 2022-12-14
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The Wilkerson Company is a manufacturer of pumps and valves that has been in business for over 50 years. The company has a long history of success, but in recent years it has been facing challenges due to increased competition and changing market conditions. In order to address these challenges, the Wilkerson Company has undertaken a number of initiatives to improve its operations and remain competitive.
One of the key challenges facing the Wilkerson Company is increased competition from low-cost overseas manufacturers. To address this, the company has focused on improving its manufacturing efficiency and productivity. This has included implementing lean manufacturing techniques, such as reducing waste and streamlining production processes. In addition, the company has invested in new technology and equipment, which has allowed it to increase output and reduce costs.
Another challenge that the Wilkerson Company has faced is changing customer preferences and demand for more specialized products. To meet this demand, the company has invested in research and development to develop new products and features that meet the needs of its customers. In addition, the company has focused on improving its customer service and support, including providing more information and resources to customers and offering more personalized service.
In order to drive growth and remain competitive, the Wilkerson Company has also diversified its product line and expanded into new markets. This has included entering into partnerships with other companies and exploring opportunities in emerging markets. In addition, the company has worked to improve its online presence and e-commerce capabilities, which has allowed it to reach a wider customer base and expand its sales.
Overall, the Wilkerson Company has taken a number of steps to address the challenges it has faced in recent years. By focusing on improving manufacturing efficiency, developing new products and features, and expanding into new markets, the company has been able to maintain its competitive edge and continue to grow and succeed.
Wilkerson Company Case Study of Harvard Business School Free Essay Example
. If reduce demands for OH resources through combination of strategic actions and operational improvements, will create unused capacity. Also based on the historical data last year, Wilkerson has experienced full capacity operation with 12,000 machine hours, 180 production runs and 400 shipments. As far as information, direct labor, material costs, and overhead costs are available. These activities could have different durations or intensities for the different products — will need to investigate and test the homogeneity assumption that allows us to summarize activities with simple transaction drivers. Often readers scan through the business case study without having a clear map in mind.
Problems and Issues : There has been a decline in the profit, especially in the pump line. Once you finished the case analysis, time line of the events and other critical details. Direct labor cost is calculated by multiplying direct labor cost per unit with the number of production units. Costs related to direct materials are based on the cost of these components purchased under such agreements. WILKERSON CASE STUDY 2 Abstract The president of Wilkerson is faced with issues concerning declining profits and is yearning to comprehend why the company is encountering these issues, specifically severe price competition on a product lone while also being able to raise the prices without any competitive responses to the product line. The buyer power is high if there are too many alternatives available. After computation, the gross margin % for each product using BBC shows on table 3.
MBA HBR : Wilkerson Co. Case Study Solution & Analysis
Besides the high manufacturing overheads, another main cause that the company should be aware of would be the large expenses in the general, selling and admin. After evaluating their high-selling valves, they realized they could use the existing labor and machinery to produce pumps and flow controllers, while still maintaining their standard gross margin of 35%. Cost of valves will decrease — high volume product benefits from lower unit-level costs, long runs, little engineering support Cost of flow controllers will increase — had less unit level activity DLH, Mhrs and more transactional production runs, shipments and product support engineering hours activity. However, if there are many suppliers alternative, suppliers have low bargaining power and company do not have to face high switching cost. On the other hand, the company did not notice such issue when using OAR accounting system and therefore setting unreasonably low selling price for these products. What is the competitive situation faced by Wilkerson? Wilkerson Company Case Background Wilkerson Company was a mid-size manufacturing supplier for water purification equipment. What causes any shifts in cost and profitability? STEP 3: Doing The Case Analysis Of Wilkerson Company Case 2: To make an appropriate case analyses, firstly, reader should mark the important problems that are happening in the organization.
The actual gross margin % for valves, pumps and flow controllers are 46. In addition, it also helps to avoid activities and actions that will be harmful for the company in future, including projects and strategies. Accounting systems impact behavior and administration and have effects across divisions, companies, and even nations. There may be multiple problems that can be faced by any organization. Brushing up HBR fundamentals will provide a strong base for investigative reading. Rare and valuable resources grant much competitive advantages to the firm.
Another method used to evaluate the alternatives are the list of pros and cons of each alternative and one who has more pros than cons and can be workable under organizational constraints. The reasons that resource imitation is costly are historical conditions, casual ambiguity and social complexity. Whereas, the opportunities and threats are generally related from external environment of organization. Most of threats came from competitors, such as malicious price cuts and products imitation. The controller proposes that the company develop an activity-based cost model to understand better the different demands that each product line makes on the organization's indirect and support resources. Hallstead Jewelers had expanded their sales space in 2006, so their fix cost had a dramatically increase.
The product wise cost and profitability of each product line of Wilkerson is given below. Using this approach for the pricing of the products is flawed, as pricing would mean only to cover the variable costs. Intercontinental hotels group plc and Ratio Comparison with Whitbread 12 3. Implementation framework differentiates good case study solutions from great case study solutions. It is better to start the introduction from any historical or social context.
Product wise profitability is calculated, which shows that the most profitable product line are valves and flow controllers are the least profitable. For the long run, probably the company needs to view their manufacturing operation process. Therefore in order to obtain profit, the company needs to raise at least 10% in the selling price. Opportunities - Developments in Artificial Intelligence — Wilkerson Line can use developments in artificial intelligence to better predict consumer demand, cater to niche segments, and make better recommendation engines. Is these conditions are not met, company may lead to competitive disadvantage.
Nevertheless, raising the price for 108% over a short period is an unreasonable yet risky approach; and will definitely affect the sales of the product as clients will look for alternative suppliers in the market. HBR Case Study To write an emphatic case study analysis and provide pragmatic and actionable solutions, you must have a strong grasps of the facts and the central problem of the HBR case study. In the 90's he got a job at LLC working as a building manager for Frank and Sam Morris. Price increment and production cut would be a great challenge to the company. What actions are suggested by the traditional cost system? This report will provide the reader a knowledge regarding cost accounting.
Therefore, to increase gross margin, two available methods can be provided: increasing sales, or decreasing costs of goods sold. Wilkerson Company Case Study Additional Aspects Of Product Costing Systems Changes from Tenth Edition Chapter 18 was modified to include discussions of customer-related and business-related cost drivers and recent evidence about the usage and success of activity-based cost systems. If the goods and services are not up to the standard, consumers can use substitutes and alternatives that do not need any extra effort and do not make a major difference. Managers still get benefits from lowering material, labor and machine time costs; but they also see big opportunities from: Operational improvements to perform batch and product sustaining activities more efficiently with fewer resources : e. Harvard Business Case Studies Solutions - Assignment Help Wilkerson Co. Harvard Business Review Case Study.
