Case 3
Case EPR purchase decision at Benton Manufacturing company
ITM R 6:00pm-10:00pm FALL 2014
Date:11/13/2014
INTRODUCTION (5 Points)
Benton Manufacturing Company, Inc., is a U.S. manufacturer of consumer durables with reported net sales in 1998 of nearly $1billion and operating profits of almost $180 million. In North America alone, the company operates 7 factories and 57 distribution centers while employing 5,200 people. Recently, through the acquisitions of several companies Benton’s product lines have expanded offering their thousands of independent dealers a broader selection. In the past, Benton Manufacturing enjoyed a 40% market share. However, as more independent dealerships are being acquired by large firms the traditional relationships between Benton and its dealers have shifted causing the profit margins to diminish. With the increased competition efforts to stave off the current pressures have also increased. The company implemented a Continuous-Improvement strategy that resulted in a 25% increased productivity, 30% inventory reduction, freed factory space, and reduced cycle time
ISSUES/PROBLEMS (20 Points)*
Industry demand is growing very slowly while the structure of the industry is undergoing rapid change as formerly inde- pendent dealerships are being acquired by large chains.
Focused on growth through the following strategies: (1) customer-driven new product development, (2) the acquisition of new businesses that complement existing ones, (3) international expansion, and (4) emphasis on the Continuous-Improvement approach
SOLUTIONS (Taken by the company) (20 Points)*
Benton management is considering acquiring an Enterprise Resource Planning (ERP) system.
An ERP system is a comprehensive set of software modules that integrate a company’s financial,human resources, operations and logistics, and sales and marketing information system, storing the data for all these systems in a central database so that data are entered only once and
ITM R 6:00pm-10:00pm FALL 2014
Date:11/13/2014
INTRODUCTION (5 Points)
Benton Manufacturing Company, Inc., is a U.S. manufacturer of consumer durables with reported net sales in 1998 of nearly $1billion and operating profits of almost $180 million. In North America alone, the company operates 7 factories and 57 distribution centers while employing 5,200 people. Recently, through the acquisitions of several companies Benton’s product lines have expanded offering their thousands of independent dealers a broader selection. In the past, Benton Manufacturing enjoyed a 40% market share. However, as more independent dealerships are being acquired by large firms the traditional relationships between Benton and its dealers have shifted causing the profit margins to diminish. With the increased competition efforts to stave off the current pressures have also increased. The company implemented a Continuous-Improvement strategy that resulted in a 25% increased productivity, 30% inventory reduction, freed factory space, and reduced cycle time
ISSUES/PROBLEMS (20 Points)*
Industry demand is growing very slowly while the structure of the industry is undergoing rapid change as formerly inde- pendent dealerships are being acquired by large chains.
Focused on growth through the following strategies: (1) customer-driven new product development, (2) the acquisition of new businesses that complement existing ones, (3) international expansion, and (4) emphasis on the Continuous-Improvement approach
SOLUTIONS (Taken by the company) (20 Points)*
Benton management is considering acquiring an Enterprise Resource Planning (ERP) system.
An ERP system is a comprehensive set of software modules that integrate a company’s financial,human resources, operations and logistics, and sales and marketing information system, storing the data for all these systems in a central database so that data are entered only once and