Hanson Industries A Case
1. Examine Hanson’s history (beginnings, competitive environment, product, technology) its goals and objectives, and the strategies – manufacturing, marketing, and financial – it has employed to pursue its goals and objectives.
1) Describe Hanson’s manufacturing, marketing, and financing strategies
Brief Description about Hanson
Hanson Industries is a company that was found in 1970 by its president, Alden B. Hanson. It was a small company that was privately held by few shareholders and selling skiing equipment as their major business operations.
1. Manufacturing Strategy
In 1973, Hanson only produced the foam liner as well as conducted the final assembly of the product. However, as business grow, they have successfully brought the manufacturing into the house. By 1978, more than 65% of Hanson’s employee was involved in the manufacturing process, and about half of these employees were skilled workers. By bringing the manufacturing process into the house, Hanson was able to cut down the cost of production.
Moreover, Hanson used level production strategy, in which the production are kept full for a period of time. For example, before the Ski Show in March, Hanson would produce 60% of the budgeted level production. This will keep the manufacturing in full production until April. By running full production, Hanson became more efficient and cost-effective as fixed cost can be assign to the huge number of output. After Ski Show ended, Hanson changed into ‘to order’ strategy in which Hanson adjust production to the order level.
2. Marketing Strategy
As its marketing strategies, Hanson has implemented these following strategies:
1. Hanson chooses to focus on a really specific segment in the ski boot market. It chooses to target the high-priced segment; focusing to sell its products to customers who are willing to pay more for their unique design and outstanding quality. Specifically, Hanson management target experienced skiers individuals that are likely to purchase
1) Describe Hanson’s manufacturing, marketing, and financing strategies
Brief Description about Hanson
Hanson Industries is a company that was found in 1970 by its president, Alden B. Hanson. It was a small company that was privately held by few shareholders and selling skiing equipment as their major business operations.
1. Manufacturing Strategy
In 1973, Hanson only produced the foam liner as well as conducted the final assembly of the product. However, as business grow, they have successfully brought the manufacturing into the house. By 1978, more than 65% of Hanson’s employee was involved in the manufacturing process, and about half of these employees were skilled workers. By bringing the manufacturing process into the house, Hanson was able to cut down the cost of production.
Moreover, Hanson used level production strategy, in which the production are kept full for a period of time. For example, before the Ski Show in March, Hanson would produce 60% of the budgeted level production. This will keep the manufacturing in full production until April. By running full production, Hanson became more efficient and cost-effective as fixed cost can be assign to the huge number of output. After Ski Show ended, Hanson changed into ‘to order’ strategy in which Hanson adjust production to the order level.
2. Marketing Strategy
As its marketing strategies, Hanson has implemented these following strategies:
1. Hanson chooses to focus on a really specific segment in the ski boot market. It chooses to target the high-priced segment; focusing to sell its products to customers who are willing to pay more for their unique design and outstanding quality. Specifically, Hanson management target experienced skiers individuals that are likely to purchase