Case Study on “Solar Feeder for Strategic Management

Good Essays
Q1. Identify the broad and specific problem of the company?

Answer:

The solar feeder is innovative tool, which is to avert squirrels from taking the birdseed by electronic shock. The solar feeder company is a distinctive wind on the typical bird feeder, which is resembled a typical birdhouse, but it houses feed instead.

The main problem for the company had no long term road map like

 which markets to compete
 How to compete (competitive Approaches)
 How to operate on a day to day basis (Meet organizational objectives) and no business model whether revenues and costs make viable business sense.

The most significant issue facing management is the lack of a business preparation and a logical tactic and objectives. They don’t also have any performance target like revenue targets, profit targets, less number of customers complains and introduce new models before competitors.

Specific Problems:
 The sales volume ($56071, dated 31st dec, 1999) is not as much as necessary to generate revenue ($26,607, dated 31st dec, 1999) even to break even as we found from the income statement of exhibit 10.
 SDI 's balance sheet shows negative checking’s/savings of $(7,308) and the income statement shows a negative net income of $(26,607) in 1999.
 The company 's pricing of the feeder is not competitive. The selling price of $ 300 is too overpriced, average price of bird feeder products range from $100 - $150.
 Difficulty in manufacturing process of the feeder which aided to low production capacity along with lower resource involvement in the production.
 The cost of the product required to be cheaper to have access in many more outlets and customers.
 Low production volume did not allow to switch to cheaper distribution channel causing higher cost and price
 Could not keep pace with the potential orders due to low production capacity let alone cope with the much higher seasonal demand of orders
 The company web-site was not very user easygoing

You May Also Find These Documents Helpful

  • Better Essays

    Ed Welsh and Bo Haeberle discovered an idea of the solar feeder. After years of developing, the product became very successful. It even won several prizes like the best new product in the Bird Watch America trade show, the national birding convention. After this, Ed and Bo decided to sell their final product under new established company Squirrel Defense, Inc. They opened a small shop in Greensboro and begin the production of the solar feeder so they could take orders for the demanded product.…

    • 1753 Words
    • 8 Pages
    Better Essays
  • Good Essays

    Solar Feeder

    • 2492 Words
    • 10 Pages

    Haeberle, with his friends invented an innovative bird feeder that worked on solar power. The feeder used a small solar panel in its roof to build an electric charge. The Solar feeder's purpose is to use the mild electric shock it generates to repel the squirrels, preventing them from stealing the bird seed or damaging the feeder itself. In a typical product-driven approach, Bo and his friends started SDI, Inc. to produce and promote the solar feeder without having done any marketing plan. After several…

    • 2492 Words
    • 10 Pages
    Good Essays
  • Good Essays

    SDI, Inc. Strategic Case Analysis #1 1.What problems do you see at SDI, and which of these problems is the most important issue facing management? The most important issue facing management is the lack of a business plan and a logical strategy and objectives. It seems as though there was never a plan to make money. Strategic and financial objectives were not considered and goals were not measurable, time bound or assignable. Producing high quality squirrel resistant bird feeders is both time consuming…

    • 900 Words
    • 4 Pages
    Good Essays
  • Powerful Essays

    CA/CWA, MEC/CEC, B.Com & B.Sc. Master Minds CASE STUDIES IN STRATEGIC MANAGEMENT May 2007 – PCC Exam DD is the India’s premier public service broadcaster with more than 1,000 transmitters covering 90% of the country’s population across on estimated 70 million homes. It has more than 20,000 employees managing its metro and regional channels. Recent years have seen growing competition from many private channels numbering more than 65, and the cable and satellite operators (C & S). The C & S network…

    • 6677 Words
    • 27 Pages
    Powerful Essays
  • Better Essays

    Q1. Expand on the rationale behind the Fiat and Chrysler strategic alliance. In December 2008 Fiat witnessed such a drop off in its demand for cars that they were forced to close for a month and lay off close to 50,000 workers. The company indicated that amid the financial crisis it was looking for a partner who could give the company the much needed push in the North American market. Fiat learned about Chrysler’s bankruptcy problems and put an offer on the table for the purchase of Chrysler. Experts…

    • 5075 Words
    • 21 Pages
    Better Essays
  • Good Essays

    serve as a foundation for an effective strategy management process. It is important to establish a clear, repeated, and ongoing strategy management process to increase the chances of a successful business. Strategy management can be the biggest challenger for a corporation of all types. It is important to develop a management strategy but also a change in mindset once the strategies are in place. After having this implemented for a year, management should reevaluate to determine which strategies…

    • 626 Words
    • 3 Pages
    Good Essays
  • Good Essays

    Bird feeder case

    • 670 Words
    • 2 Pages

    ‘Birds World’ manufactures a variety of bird feeders, garden accessories, and other items intended to help people get in touch with and observe nature. Founded in 1995 by Jim McMaster in LaGrange, Illinois, the company started when he was working as a fourth-grade teacher. Presentations to students on birds and wildlife had a way of capturing their enthusiasm; thus, McMaster started offering presentations to other schools in the greater Chicago area. Within a few years, McMaster was so busy doing…

    • 670 Words
    • 2 Pages
    Good Essays
  • Good Essays

    Namaste Solar Case Study

    • 1011 Words
    • 3 Pages

    Namaste Solar Case Study 1. What is the mission of Namaste Solar? How does the mission reflect the company’s values? Explain. The mission statement of Namaste Solar is “to propagate the responsible use of solar energy, pioneer, conscientious business practices and create holistic wealth for our community which benefits all stakeholders equally- customers, employees, investors, and the environment.” The mission statement reflects the company’s values because they direct explain how the values or…

    • 1011 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

    Case study discussion – Gillette loses face This is a deceptively simple-looking case. The lazy student will simply adopt the critical line on the company’s strategy being fed to him or her by Jeremy Kahn, the author of the article. In fact, things are by no means so clear-cut, students need to do some careful analysis, particularly in the area of Gillette’s corporate-level strategy, before this becomes plain. They have to be prepared to think hard about the success factors in the different businesses…

    • 1902 Words
    • 8 Pages
    Powerful Essays
  • Powerful Essays

    ‘Strategic Management’ is a very complex term as many eminent researchers and scholars have had different views and conclusions on strategy. According to White (2004), “Strategic Management involves both systematically developing an idea together with its implications and testing the empirical validity & usefulness of that idea against the real world.” Thus strategy is not only about planning for future but also about confirming the validity of the hypothesis considered and implementing it successfully…

    • 3355 Words
    • 14 Pages
    Powerful Essays