Stacey Tile Case Study
Stacey Tile Company
Case adapted by Richard Bery and analyzed by Luminita Tudor
1. SWOT analysis of Stacey Tile Company
Strengths:
+ competitive advantage: the position of the location - within a radius of 500 km which represents 60% of the U.S. market of floor & wall tile (its biggest assest)
+/- one operational tunnel kiln
+ good production manager with over 10 years in the company (Mr. Henley)
+/- financial capacity of Mr. Gilbert
+ Mr. Gilbert’s experience
+/- Mr. Gilbert’s motivation
+/- equipment for glazing ¼ of the production
Weaknesses: no fans; wooden floor (dust) no improvements of the factory building low number of trained workers high level of payables (including mortgage)
-/+ no MIS system (inventories); visual control for production planning
+/- equipment for glazing ¼ of the production
Opportunities:
+/- increasing market for wall tile – strong demand
+ higher prices for wall tile
+ production of high quality wall tiles - differentiation / specialization
+ higher entry barrier for wall tile – higher margins
Threats: high competition low price for floor tile low entry barrier for floor tiles extensive advertising for substitutes (glass, linoleum & cork)
2. Stacey Tile’s Mission
Concentrate production on high quality/colored wall tiles
Concentrate sales efforts on tile setters.
How will its MISSION be achieved?
Take advantage of the housing construction increase impact on the sale of tiles – Summer 1987
Low entry barriers in the floor tiles segment versus the wall tiles segment (Use of more expensive equipment, better trained workforce and a more skillful management of resources)
Contrary to wholesalers, tile setters do not seek quantity discounts and favor a low-pricing strategy
Gilbert’s Intentions:
Hire competent workers and managers to improve quality
Obtain a higher selling price by going directly to tile setters
Adopt a 2% discount/15 days payment policy
Purchase raw
Case adapted by Richard Bery and analyzed by Luminita Tudor
1. SWOT analysis of Stacey Tile Company
Strengths:
+ competitive advantage: the position of the location - within a radius of 500 km which represents 60% of the U.S. market of floor & wall tile (its biggest assest)
+/- one operational tunnel kiln
+ good production manager with over 10 years in the company (Mr. Henley)
+/- financial capacity of Mr. Gilbert
+ Mr. Gilbert’s experience
+/- Mr. Gilbert’s motivation
+/- equipment for glazing ¼ of the production
Weaknesses: no fans; wooden floor (dust) no improvements of the factory building low number of trained workers high level of payables (including mortgage)
-/+ no MIS system (inventories); visual control for production planning
+/- equipment for glazing ¼ of the production
Opportunities:
+/- increasing market for wall tile – strong demand
+ higher prices for wall tile
+ production of high quality wall tiles - differentiation / specialization
+ higher entry barrier for wall tile – higher margins
Threats: high competition low price for floor tile low entry barrier for floor tiles extensive advertising for substitutes (glass, linoleum & cork)
2. Stacey Tile’s Mission
Concentrate production on high quality/colored wall tiles
Concentrate sales efforts on tile setters.
How will its MISSION be achieved?
Take advantage of the housing construction increase impact on the sale of tiles – Summer 1987
Low entry barriers in the floor tiles segment versus the wall tiles segment (Use of more expensive equipment, better trained workforce and a more skillful management of resources)
Contrary to wholesalers, tile setters do not seek quantity discounts and favor a low-pricing strategy
Gilbert’s Intentions:
Hire competent workers and managers to improve quality
Obtain a higher selling price by going directly to tile setters
Adopt a 2% discount/15 days payment policy
Purchase raw