New Heritage Doll
New Heritage Doll
Case Analysis
3/29/2013
Introduction Emily Harris is the Vice president of New Heritage Doll Company’s production division. In mid-September of 2010 she was trying to decide on project proposals for the company’s capital budget meeting in October. Of the proposals presented to her, two of them stood out based on their innovation and ability to strengthen the division’s product lines. The first project, Match My Doll Clothing Line Expansion (MMDC), would extend the warm weather products to an all-weather clothing line. The second project, Design your Own Doll (DYOD), would start with a website where customers would choose the doll’s features, color, etc. and then the dolls will be made to order. The firm could decline both of the proposals because of managerial and financial resource constraints. Other divisions in the company are also expected to promote projects of their own. Because of these factors Harris has to choose to promote one of her division’s projects over the other. The following questions will help Harris make the best decision for her division and help support her recommendation when communicating back with the divisions executives.
1. Set forth and compare the business cases for each of the two projections under consideration by Emily Harris. Which do you regard as more compelling?
The Match My Doll Clothing Line Expansions (MMDC) Project involves expanding the existing successful Match My Doll Clothing line. This clothing line originally consisted of a few sets of matching doll and child clothing for warm weather. Given its current success, there is a consideration to expand it to include all season clothing line. Since it is an expansion to existing product line, investment in operating capital, pricing structure and product cost can be based on historical information. The company should be able to use current sales channels like selling to retail divisions or private labels. New Heritage should be able
Case Analysis
3/29/2013
Introduction Emily Harris is the Vice president of New Heritage Doll Company’s production division. In mid-September of 2010 she was trying to decide on project proposals for the company’s capital budget meeting in October. Of the proposals presented to her, two of them stood out based on their innovation and ability to strengthen the division’s product lines. The first project, Match My Doll Clothing Line Expansion (MMDC), would extend the warm weather products to an all-weather clothing line. The second project, Design your Own Doll (DYOD), would start with a website where customers would choose the doll’s features, color, etc. and then the dolls will be made to order. The firm could decline both of the proposals because of managerial and financial resource constraints. Other divisions in the company are also expected to promote projects of their own. Because of these factors Harris has to choose to promote one of her division’s projects over the other. The following questions will help Harris make the best decision for her division and help support her recommendation when communicating back with the divisions executives.
1. Set forth and compare the business cases for each of the two projections under consideration by Emily Harris. Which do you regard as more compelling?
The Match My Doll Clothing Line Expansions (MMDC) Project involves expanding the existing successful Match My Doll Clothing line. This clothing line originally consisted of a few sets of matching doll and child clothing for warm weather. Given its current success, there is a consideration to expand it to include all season clothing line. Since it is an expansion to existing product line, investment in operating capital, pricing structure and product cost can be based on historical information. The company should be able to use current sales channels like selling to retail divisions or private labels. New Heritage should be able