Posted: July 9th, 2022

What are the 3-4 chief elements of your company’s production strategy (as concerns number and location of plants, making plant upgrades, worker compensation, use of TQM/Six Sigma programs, use of overtime, and so on)? A

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INSTRUCTIONS: What are the 3-4 chief elements of your company’s production strategy (as concerns number and location of plants, making plant upgrades, worker compensation, use of TQM/Six Sigma programs, use of overtime, and so on)? Also, is your company employing a global strategy in branded footwear or a strategy that varies significantly from geographic region to geographic region? Why is that strategy being employed?
Below are the decisions that our team made for the results that we received for Year 12. These results are what I need to discuss in this order.
Comp/Training: Since we gave too much compensation in the practice round, we backed down to 1% wage increase and decreased fringe benefits as well.
Branded Production: We invested a great deal into TQM/6-Sigma because these effects are compounding. If we invest early, a smaller amount has the same effect as throwing a greater sum of money at it later.
Production Facilities: In the practice round, we had shortages of supply in every market. To alleviate this, we had to buy new equipment. We also went ahead and bought additional space in the markets we could afford to do so and used Option B to counter those costs.
Distribution: Our main goal was to have a surplus of 200 shoes in each market. It may get more difficult to meet demand in the years to come so a cushion needs to be built.
Internet Marketing/Wholesale Marketing: Latin America is shrinking our profits. It is almost as if a win in another market is offset by a loss in LA. Year 13 we will see how profitable this market really is and decide to be more active in the marker to abandon it. We had to set really high prices in internet marketing just to make it worth it, wholesale marketing is currently a losing situation.
Private Label: Not sure a whole lot of profit/revenue come from this screen, but this screen affects our credit rating, which affects our demand. We may have gone too low.
Finance/Cash Flow: Took out enough money to cover our investments and have change left over. Should be small enough that we do not have trouble paying it back. Increased dividend by 2%.
Additional Notes: In the practice round, we did not pay attention to the red box showing projections so we cannot compare our projected results versus last week, but these numbers are far greater than last week’s outcome. They will be even greater next week if we are able to provide more model/styles than our competition and if we do not invest as much (best practices, TQM, additional warehouse space). One thing we forgot to discuss/research is the effect of models/styles. I noticed that if we have 300 and competition has 250, our revenues and profits nearly double. I am not sure if there are any downfalls of heavily increasing models and styles early on, so I was hesitant to change it without a group consensus.
Lastly, I’ve attached the results that came back for Year 12. Each report attached consist of the Footwear Industry Report, the Competitive Intelligence Reports and Company Operating Reports (in order). Each of these reports breaks down all the chief elements of our Company. I also, attached the message that I received for the results of Year 12 and Year-Over-Year Highlights report. Please note, my company is Company B – BRK Shoes.
Any questions, please let me now. Thank you!

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