Reference no: EM131351978
ESCOM-COPING WITH RUNWAY CAPACITY NEEDS - ESCOM is a producer of electronic home appliances, ESCOM is a producer of electronic home appliances, including VHS (Video Home System) television recorders, located in northern California. The packaged product weighs about 75 kg. ESCOM was not the innovator of the system. Rather, its managers sat back and let RCA and others develop the market, and ESCOM is currently producing under license agreements. ESCOM has a conscious strategy of being a follower with new product innovations. It does not have the financial resources to be a leader in research and development. ESCOM's present opportunity is indicated by the fact that industry sales of VHS recorders have increased 30 per cent per year for the past two years, and forecasts for the next year and the two following are even more enticing. ESCOM has established a 10 per cent market share position and feels that it can at least maintain this position if it has the needed capacity; it could possibly improve its market share if competitors fail to provide capacity at the time it is needed.
|
Year
|
0
|
1
|
2
|
3
|
4
|
5
|
Forecast, 1000 Units
|
100
|
140
|
195
|
270
|
350
|
450
|
Capacity (gap), or slack 1000 units
|
5
|
(35)
|
(90)
|
(165)
|
(245)
|
(345)
|
The forecasts and capacity gaps are indicated in Table. ESCOM regards the first year forecast as being quite solid, based on its present market share and a compilation of several industry forecasts from different sources. It is less sure about the forecasts for future years, but it is basing these forecasts on patterns for both black and white and color TV sales during their product life cycles ESCOM's VHS model has a factory price of Rs 600. Variable costs are 70 percent of the price. Inventory carrying costs are 20 per cent of inventory value, 15 percentage points of which represents the cost of capital. ESCOM's facility planners estimate that a 40,000 unit plant can be built for Rs. 5 million and a 200,00 unit plant, for Rs. 10 million. Land and labour are available in the area, and either size plant can be built within a year.
(a) What capacity plans do you think ESCOM should make for next year? Why?
(b) What longer-term capacity plans should ESCOM make? Why?
(c) What are the implications of these plans for marketing, distribution, and production?
How is your life like a puzzle
: This is the topic i was given to write about.. I also added some attachments to help the process... The prewriting work sheet is attached This is the topic: How is your life like a puzzle?
|
Particularly popular model of laptop computer
: An electronic retail chain wishes to minimize costs for a particularly popular model of laptop computer. This retail chain has a line of credit to fince its inventory and the current holding rate is 4.5% The chain estimates it can sell 30,000 unit..
|
Question regarding the business presentations
: In a 250-300 word response, describe how you would build rapport with your audience in a business presentation. What motivational strategies have you used in the past that were successful or what strategies have you seen speakers use that were eff..
|
Write a response paper about the play hamlet
: Write a RESPONSE PAPER about the play "HAMLET".- Craft your own personal Likes/Dislikes List. Find elements that worked well for you and those that did not work as well.
|
What longer-term capacity plans should escom make
: What capacity plans do you think ESCOM should make for next year? Why? What longer-term capacity plans should ESCOM make? Why
|
Determining the microbead act
: Why do you think the Microbead Act became law so quickly (especially in our legislative system) while the Main Street Fairness Act has yet to be passed?
|
What are some examples of companies
: What are some examples of companies that have offered their products or services for free? How did this help their strategies and give them a competitive advantage?
|
Why having referential integrity also means data is arranged
: Explain why having referential integrity also means data is arranged more efficiently. Databases require both a physical and conceptual model. Compare these models. How do they differ? Name and describe at least two methods for searching and accessin..
|
Misleading marketing tactics
: Top 10 Misleading Marketing Tactics (12:35). Based on your own experiences, the video, or a news story, relate a time when you believe that the law affected a business. Describe the events, the law, and how the court did or should resolve your exam..
|