Question 1: How does Ben Lawson’s Custom Fabricators, Inc., create value for Orleans? Custom Fabricators, Inc. is able to create value to Orleans because Custom Fabricator’s manufacturing plant is right next to Orleans’ plant. Ben is able to minimize lead-time for Orleans. They are able to deliver parts to Orleans really fast. Quality is also something Custom Fabricators could ensure because they are able to fix something and deliver it to Orleans quicker because they are so close to each other. Custom Fabricators would also be more effective for Orleans because they’ve cooperated for so long, so Custom Fabricators know the needs and requirements of Orleans really well. They can offer Orleans better field support and problem solving.
Question 2 In the past, what has been Ben Lawson's competitive advantage in keeping the Orleans business? CFI can maintain its competitive advantage due to its propel location, it is near Orleans facility, and it also invest new machines to improve the processes of manufacture for Orleans; meanwhile, its employee loyalty is good because it pay its employees good. In this case, it make CFI have a competitive advantage.
Question 3 Have Orleans’s priorities changed?
From the case, it is clear to see the Orleans has changed priorities. There are trying to change base to the high quality products. Also they change products to cheaper price as a base strategy. They reduce the cost with elevators and the raw materials, also something else. Ben was concerned about some big issues, such as reducing labor costs and competing with the Mexican labor market. He also was concerned the security of his position relationship with the company.(Can Chen 9362)
4. Should Ben change his business model?
Yes, Ben should change his business model because Orleans, its customers, is changing. Orleans outsourced the whole elevator. Orleans reduced its plant size from 400,000 square feet to 150,000 square feet. Recently, Orleans is reducing its...
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