Review the case study of the dear john mower company

Assignment Help Management Theories
Reference no: EM131446160

Question: THE DEAR JOHN MOWER COMPANY
The Dear John Mower Company is an old-line manufacturer of gasoline-powered lawn mowers and riding mowers. Increased competition has resulted in Dear John's share of the mower market declining to 10 percent. Profits have declined to the point that many are questioning Dear John's ability to survive.

The firm employs three engineers who are responsible for the development and design of all new mowers. When the engineers are not involved in the development of new products, they apply their energy to value analysis work in an effort to engineer costs out of the firm's products.

Material costs at Dear John range from 55 to 65 percent of the cost of goods sold. Supply management has been a routine function, responsible for issuing purchase orders confirming the sourcing decisions of the engineers and for issuing order releases against these purchase orders. Recently, Mr. Tom Dalton, CPM, was hired in an effort to reduce the cost of purchased materials. Mr. Dalton had some success through the application of price and cost analysis and professional negotiation concepts. Material costs have dropped an average of 12.5 percent. These savings have been the basis of a badly needed shot in the arm for Dear John's financial report. Tom believes that he's done about all he can to reduce costs-short of getting himself and his key suppliers involved early in the design of new mowers. Tom has initiated discussions on this approach with John Steel, chief of engineering-to no avail. Mr. Steel is adamant that his engineers are the best in the industry and develop the industry's finest mowers. He acted insulted when Tom suggested that early supply management and early supplier involvement would improve Dear John's profitability.
Having had no success with engineering, Tom has initiated discussions on the matter with Mr. Helmich, COO of Dear John. Mr. Helmich has requested Mr. Steel and Mr. Dalton to meet with him to discuss the merits and possible implementation of early supply management and early supplier involvement.

As a consultant for THE DEAR JOHN MOWER COMPANY, you are required to assess the aspects of Supply Chain Management and use your own assumptions to answer the following questions:-

1. Discuss the advantages of the inclusion of supply management and prequalified suppliers.

2. Discuss the disadvantages of excluding supply management and suppliers from the new product development process.

3. Assuming that the three executives agree on early involvement of supply management and suppliers, develop a plan to implement this new way of doing business.

Reference no: EM131446160

Questions Cloud

Is the mission statement clear and easily understood : Is the mission statement specific, short, sharply focused, and memorable? Is the mission statement clear and easily understood? Does the mission statement say how the company wants to be remembered?
Discuss about the national health expenditure accounts : The National Health Expenditure Accounts (NHEA) estimates health care spending over time, including everything from health care goods and services to public health activities, government administration to health care investment. For this assignmen..
A not-for-profit medical research center : You are Alexis, the director of external affairs for a national not-for-profit medical research center that does research on diseases related to aging. The center's work depends on funding from multiple sources, including the general public, individu..
How can publix use social media to assist in the development : For years, Publix Grocery Stores have attempted to develop a strong brand image and has recently started to develop a strong brand relationship. How can Publix use social media to assist in the development of brand relationships?
Review the case study of the dear john mower company : The Dear John Mower Company is an old-line manufacturer of gasoline-powered lawn mowers and riding mowers. Increased competition has resulted in Dear John's share of the mower market declining to 10 percent. Profits have declined to the point that..
All cash flows except initial investment are non-negative : You have just been hired as a consultant by Pace Corporation, and have been asked to evaluate their capital budgeting procedures. After recovering from shock, you read that one of the accepted projects has an initial cost of $1, 900. All cash flows e..
What is networking : What is networking? What are the different layers that together form the networking platform?
What value did you receive from watching it : you will complete a nursing theorist video analysis/reflection of one of the nursing theorist videos provided in the course. We highly recommend that you watch as many of these videos as you can throughout the course. This is a great opportunity f..
How and why he designed and built the chapel : His feelings about color - How and why he designed and built the chapel.

Reviews

Write a Review

Management Theories Questions & Answers

  Learning in action

Learning contract proposal that will form the basis of your learning contract report.

  Change is the only constant

"Change is the only constant " Evaluate the different types of change that have occurred in Sony.

  How do advertisers try to use group influence

How do advertisers try to use group influence?  Will you find any specific examples and explain the relevant theory of group behavior and influence?

  Case study:saving sony

You have been appointed by Sony as a consultant on change management. Advise Sony on how they could implement the change by using the various theories of change you have learnt.

  How the stock market works

The purpose of this project is to help you to gain an understanding of how the stock market works and of the relationship between theory and practice.

  Find the optimal production quantities

Find not only the optimal production quantities, but also the optimal total cost.

  Describe the management process

Describe the management process and identify the skills required to manage business organizations.

  Case study : bert''s bonsai and aquatic sport museum

Case Study : Bert's Bonsai and Aquatic Sport Museum Prepare a knowledge management system.

  Knowledge management techniques

Demonstrate understanding of the many-sided nature of knowledge management

  Theory of transtheoretical model

Demonstrate understanding of the many-sided nature of knowledge management

  Write a paper on historical trends of management

Write a paper on Historical Trends of Management.

  Theory of reasoned action

Theory of Planned Behavior and Integrated Behaviors Model

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd