Wc Wood

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Wc Wood

By | November 2012
Page 1 of 1
W.C WOOD COMPANY

Situation Analysis
WC Wood started the company in the year 1930 in Guelph, Ontario. Initially, it designed and manufactures small electrical equipment’s for farms which by the year 1950 had grown and expanded into hardware, military equipment and home appliance. However, during the year 1964 to 1974, John Wood son of WC Wood has re- focused the business on home appliances and exited all other business. By the year 1980 WC wood had become Canada’s largest freezer manufacturer which later on became the second largest manufacture in North America and one of the top five in the world. By the year 2004,W.C wood company operated five production line in four plants(the capacity of production of individual plant is given in exhibit). Each facility was responsible for its own design and quality. The W.C Wood Company is reviewing the proposal to change the Packaging for the company’s freezers and refrigerators from “Card board” to “Clear Pack” Requirement of Packaging

Packaging is required, to protect the product from damage and to enable the product to be efficiently handled by lift trucks fitted with clamps or a basiloid. The W.C wood company was losing heavily on account of the warranty claim arises as a result of the product damages. Whenever there was a claim made against the company ,they offered the dealer a credit of up to $75 per claim and this was putting an extra thrust to the company expenditure .(1% to 2.8 % ,Pl. refer exhibit) Because of the tremendous increase in the raw material price of card board and the labour cost using Cardboard as a packaging material was more costly than the use of Clear Pack. The use of Clear Pack would draw an initial additional investment but at the same time there were some benefits also associated with it viz. Cheaper than Cardboard (saving ranges from$0.455 to $2.1 per unit), less numbers of labour required(saving ranges from$0.043 to $0.580 per unit) and reduction in the damages claim