In fact, an internal sales Case study curled metal inc engineered products division may confuse the purchasing process because contractors may not be willing to take the time or effort to talk to salesmen for such a small factor in their overall project. You can use this history to draw a growth path and illustrate vision, mission and strategic objectives of the organization.
Further, it took 20 sets of pads to place piles of 55 feet.
Cost Oriented Price The first alternative of the company would be based on selecting a general mark up for the company. Brushing up HBR fundamentals will provide a strong base for investigative reading. This is just a sample partial work. Marketing decisions Once pricing policy is established premium pricemarketing decisions must support the business strategy.
Since the feet of piles driven amounted to between and million and the new CMI set of pads would drive 10, feet, we can easily calculate that the market should be in a range of 29, to 39, sets per year.
Several Pad features and pricing decisions will be discussed and analyzed in this section. Begin slowly - underline the details and sketch out the business case study description map.
Often history is provided in the case not only to provide a background to the problem but also provide the scope of the solution that you can write for the case study.
The main concern about a high market penetration is related with the production cost, equipment investments can be easily amortized with the increasing volumes but the cost of fixed factory overhead play the main role in determining final price because they are based on direct labor. You should make a list of factors that have significant impact on the organization and factors that drive growth in the industry.
For the long period, considering the product life cycle, CMI has to focalize his effort in cost reduction to allow a progressively decreasing of the price.
What factors are relevant in calculating willingness to pay in this situation? It also provides starting ideas as fundamentals often provide insight into some of the aspects that may not be covered in the business case study itself.
The total time saved and the time efficiency will have to be considered. Focus on the following - Zero down on the central problem and two to five related problems in the case study.
This scenario charges a premium price based on how much value and cost savings the new pads present to the customer. Drawing a motivation chart of the key players and their priorities from the case study description. CMI would only need to convince contractors of the price- per-foot comparison to micarta pads and show the cost savings based on efficiency.
The next step is organizing the solution based on the requirement of the case. Than the total time for the job, not considering delays and moving, can be estimated in minutes, equal to Mar 14, Answered case study questions: Cumberland Metal Industries is one of the leading industries in the curled metal products industry and it is the largest manufacturer of the curled metal products in the whole country.
They should also market directly to contractors and engineering firms by educating them on the efficiency and safety benefits of the new CMI pads a pull approach.
In some cases you will able to find the central problem in the beginning itself while in others it may be in the end in form of questions. Without more information about the possibility to reduce production costs with increasing volumes and the proper amortization period for machinery, my suggestion for CMI is to pursue a low penetration in the market using the second alternative for pricing the pads and target premium costumers for bigger and more sophisticated job.
In fact, the CMI should be aware that other competitors could enter into the market as the product is easily imitable.
Value Added to Customer Approach Another alternative is to attempt to split the cost benefit or value added by using the new metal pads with consumers. You have to recommend business unit level recommendations. Cost Oriented Price The first alternative of the company would be based on selecting a general mark up for the company.
HBR case studies provide anecdotal instances from managers and employees in the organization to give a feel of real situation on the ground. These are the total costs per hour of pile driving, the saved costs for driving as well as the savings in changing time.
Other issues, such as the market potential, are additionally discussed in the case study. Safety The new metal pads are much safer than conventional pads. Decision Alternatives The total market for pile driving averages million feet per year. As said alternative 1 is not actionable with high volumes unless CMI do not find a way to reduce the incidence of labor and markup related to fixed cost.
The company should lobby the labor unions to push for higher safety standards and abandon the hazardous used pads. What should be the price for customers? It further asserts that pile drivers average feet per hour. There are several marketing decision that need to be made by the management of the company, starting with the price of the curled metal pads.Curled Metal IncEngineered Products Division is a Harvard Business (HBR) Case Study on Strategy & Execution, Fern Fort University provides HBR case study assignment help for just $ Our case solution is based on Case Study Method expertise & our global insights.
Curled Metal Inc. has created new curled metal pile driver pads. What should be the price for customers? 3 questions answered, words, incl.
Excel file. Casehero. Case study solutions by top business students. Curled Metal Inc. – Case Study Analysis. This case solution includes an Excel file. Curled Metal IncEngineered Products Division Case Solution, Curled metal Incorporated lower sales, but has developed a new product (platelets driver rolled hair metal), in field tests, provides benefits for customer.
Curled Metal Inc.–Engineered Products Division Case Solution,Curled Metal Inc.–Engineered Products Division Case Analysis, Curled Metal Inc.–Engineered Products Division Case Study Solution, Pricing Analysis of the New Business Model The calculations for the pricing of the new business model are given in the section of exhibits.
Case Study: Curled Metal Inc. Cumberland Metal Industries: Engineered Products Division, Overview: Cumberland Metal Industries (CMI) is one of the largest manufacturers of curled metal products in the U.S.
The company started the business by making highly technical applications, but soon changed from selling the finished products to.
Curled Metal IncEngineered Products Division case analysis, Curled Metal IncEngineered Products Division case study solution, Curled Metal IncEngineered Products Division xls file, Curled Metal IncEngineered Products Division excel file, Subjects Covered Competitive advantage Distribution Pricing Product introduction .Download