Case Study on “Solar Feeder for Strategic Management

Topics: Revenue, Income statement, Income Pages: 4 (956 words) Published: December 8, 2010
Q1. Identify the broad and specific problem of the company?


The solar feeder is innovative tool, which is to avert squirrels from taking the birdseed by electronic shock. The solar feeder company is a distinctive wind on the typical bird feeder, which is resembled a typical birdhouse, but it houses feed instead.

The main problem for the company had no long term road map like

which markets to compete
How to compete (competitive Approaches)
How to operate on a day to day basis (Meet organizational objectives) and no business model whether revenues and costs make viable business sense.

The most significant issue facing management is the lack of a business preparation and a logical tactic and objectives. They don’t also have any performance target like revenue targets, profit targets, less number of customers complains and introduce new models before competitors.

Specific Problems:
The sales volume ($56071, dated 31st dec, 1999) is not as much as necessary to generate revenue ($26,607, dated 31st dec, 1999) even to break even as we found from the income statement of exhibit 10. SDI's balance sheet shows negative checking’s/savings of $(7,308) and the income statement shows a negative net income of $(26,607) in 1999. The company's pricing of the feeder is not competitive. The selling price of $ 300 is too overpriced, average price of bird feeder products range from $100 - $150. Difficulty in manufacturing process of the feeder which aided to low production capacity along with lower resource involvement in the production. The cost of the product required to be cheaper to have access in many more outlets and customers. Low production volume did not allow to switch to cheaper distribution channel causing higher cost and price Could not keep pace with the potential orders due to low production capacity let alone cope with the much higher seasonal demand of orders The company web-site was not very user easygoing to all...
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