Essay on Situational Anal

Submitted By acgriffin
Words: 603
Pages: 3

1. Each and every year, customers will demand increased performance and decreased size in the sensors that our firm manufactures and sells, however each customer segment has different requirements as to the rate this change should occur (Table 1). High-end customers are looking for the most total amount of change with a change in performance and size at rates of 0.9 and -0.9 respectively. In contrast, the low-end consumer has the lowest expectations from year to year with a change in performance and size of 0.5 and -0.5 respectively. Other customer segments are more interested in specifically performance or size. Performance customers expect performance to increase more than any other customer segment we serve. Likewise, Size customers prefer decreases in size (as compared to performance) at a rate higher than another other customer segment. Our traditional customers prefer increases in performance and decreases in size at a more average level (Table 1). The largest expected demand growth rate is for high end products at a rate of 20.2% per year, and the lowest expected demand growth is traditional products with a demand growth of 6.7% per year (Table 2). 2. Our firm has identified a short-term opportunity to increase capacity for our low end products, as the current capacity falls short of the market demand (by 93 units per firm or 558 for the industry) (Table 3). Our long-term strategy is to exploit the most profitable customers in the marketplace, as measured by the contribution margin achieved (discussed further in the next section). The recent split of the large conglomerate has created an equal share of capacity and demand for each of the six industry competitors. Given this temporary situation, our firm has identified what would be clearly identified by the competitors. Thus, we may adapt our strategy to exploit the second most profitable areas to capture the markets overlooked by our rivals in order to establish more ground with respect to marketshare. 3. Based on our current production capacity, and if our firm were to produce and sell our maximum capacity, we would expect to achieve a profit of $110,834,000 during this year (Table 4). This is taking into account a 30% second shift for our Acre product, which is currently in use. All other production remains the same with just a single shift. 4. Following the division of our conglomerate, there is not yet any customer loyalty to any of the…