Winnebago Industries (www.winnebagoind.com) is a comprehensive business policy and strategic management case that includes the company’s fiscal year-end August 2007 financial statements, competitor information and more. The case time setting is the year 2008. Sufficient internal and external data are provided to enable students to evaluate current strategies and recommend a three-year strategic plan for the company. Headquartered in Forest City, IW Winnebago Industries common stock is publicly traded on the New York Stock Exchange under the ticker symbol WGO.
Winnebago produces a diverse line of motor homes on truck and van chassis. The company sells its products through independent dealers in the US and Canada under the brand names Winnebago and Itasca. The company has over 3,300 employees and is lead by CEO Bruce Hertzke whose base pay was over $1.15M in 2007. The firm’s major competitors are Coachmen and Fleetwood.
B.Vision Statement (proposed)
To become the number one motor home vehicle company in the world.
C.Mission Statement (actual)
Winnebago Industries, is the leading United States (3) manufacturer of motor homes (2) and related products and services. Our mission is to continually improve our products and services to meet or exceed the expectations of our customers (1,6). We emphasize employee (9) teamwork and involvement in identifying and implementing programs to save time and lower production costs while maintaining the highest quality of products (7). These strategies allow us to prosper as a business with a high degree of integrity and to provide a reasonable return for our shareholders, the owners of our business (5).
2. Products or services
5. Concern for survival, profitability, growth
8. Concern for public image
9. Concern for employees
1. US tax laws favor tax treatment for the purchase and sale of motor homes that are used as the equivalent of 2nd homes. 2. Motor home buyers are entering the market as early as age 35 in life. Historically most buyers were 55 and older. 3. Sale of RVs are expected to rise by 8.5 percent by year end 2010. 4. Recreational Vehicle Rental Associations survey expects a 20 percent increase in motor home and travel trailer rentals. 5. Reports indicate that savings on lodging and food make RVing make traveling cheaper in the long run. 6. By the end of the decade the number of baby boomers retired should be 38 percent higher than in 2000. 7. According to an University of Michigan Study, two-thirds of current owners play to purchase another RV. 8. Among all US households, 23 percent indicate they are considering purchasing a RV in the future. 9. Weak Dollar makes products more affordable in foreign markets.
1. Motorized portion of RV industry experiencing a volume decline. 2. Current high prices of fuel.
3. Implementation of OSHA regulations can significantly increase the cost of manufacturing products. 4. Industry is seasonal with increases in sales in Spring and Summer months. 5. Industry is highly affected by income level, economics and politics.
CPM – Competitive Profile Matrix
| |Winnebago |Fleetwood |Coachman | |Critical Success Factors |Weight |Rating |Weighted Score |Rating |Weighted Score |Rating |Weighted Score | |Market Share |0.20 |4 |0.80 |3 |0.60 |2 |0.40 | |Price |0.10 |3 |0.30...