Rock of Ages is a vertically integrated granite quarry and manufacturer and seller of several products. The company owns and operates 13 active quarry properties and ten manufacturing and sawing facilities in North America, principally in Vermont, Georgia, and the Province of Quebec (Rock of Ages Corporation, 2010). Lately, the company has not met its expected revenue and is falling behind in a few areas of the business. The management issues associated with manufacturing are:
Industrial products: With high quality and little competition (only 2-3), this segment of the business is strong with a margin that exceeds 25 percent.
Monuments: Rock of Ages tackles several issues in this segment. The company is famous for its brand and by its quality and holds true throughout the different segments of the business. One major issue is that sales seem to be steady but delivery dates are erratic. For three weeks prior to Memorial Day, employees increase output from 75-125 monuments per day to 125-135. During this period the systems and the staff are operating at maximum capacity and high stress. The delivery date schedules need to be modified. This is a highly competitive environment with both small and large companies in the business. The biggest threat is the influx of monuments from China that sell at a far lesser price. The profit margin in this segment is less than 10 percent and it could get worse. The company, however, has more orders than it can handle and relies on subcontractors.
Mausoleums: There are only 3 to 4 significant competitors at the high end of this segment but there is always the threat of others trying to enter the business. However, while new entrants are not a long-end threat can drive the company's profit margin less than 20 percent.
Special Projects: This is highly specialized task requiring significant skill and capacity in all areas. The companies bid for building the World War II Memorial in Washington, which will...
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