Reynolds Construction Case Study
Nhu Nguyen
MGT314
Homework 1
09/03/2014
1.
2007
2008
Output
103000
112000
Input
84
96
P1 = 103000/84 = 1226.19
P2 = 112000/96 = 1166.67
% change in P = (P2 – P1)/ P1 = (1166.67 – 1226.19)/ 1226.19 = -4.85%
2.
a. Case 1: Custom Fabricators
1. Ben Lawson’s Custom Fabricators, Inc., creates value for Orleans by making the custom control panel for the elevators. Later on, the business has grown bigger. Ben’s company provides special brackets and panels for the plant. Since “outsourcing”, Ben also makes the entire control panel, complete with the buttons and the wiring harness.
2. Ben Lawson has some big competitive advantages in keeping the Orleans business. They have been working together for a long time so Ben‘s company could easily understand what the customer need like delivering in time, great quality products. After few changes, Ben still provide good products for Orleans so that help Ben to gain trust in doing business, which strengthens their relationship.
3. In the past, Orleans’ priorities were only about quantity, doing the same business with familiar suppliers. Now Orleans has change that. They want to make profit, reduce cost associated with the elevators by cutting raw materials cost, and that would affect Ben’s business.
4. Ben should change his business model so that it would have him gain advantages. Even though Ben has long relationship doing business with Orleans, it may not help much with Orleans’ new priorities.
5. In the value chain, Ben’s company is an efficient manufacturer because they build a factory that has full of tools to bring out the best products. Besides, those products are always delivered in time since Ben understands Orleans’ business.
6. Ben’s company has to prove that they will always bring high quality products that in Orleans’ need. Compared to a loyal customer as Ben, it would be safer to doing business with, both relationship and physical distance. Besides, Ben has to prove that hiring Mexican
MGT314
Homework 1
09/03/2014
1.
2007
2008
Output
103000
112000
Input
84
96
P1 = 103000/84 = 1226.19
P2 = 112000/96 = 1166.67
% change in P = (P2 – P1)/ P1 = (1166.67 – 1226.19)/ 1226.19 = -4.85%
2.
a. Case 1: Custom Fabricators
1. Ben Lawson’s Custom Fabricators, Inc., creates value for Orleans by making the custom control panel for the elevators. Later on, the business has grown bigger. Ben’s company provides special brackets and panels for the plant. Since “outsourcing”, Ben also makes the entire control panel, complete with the buttons and the wiring harness.
2. Ben Lawson has some big competitive advantages in keeping the Orleans business. They have been working together for a long time so Ben‘s company could easily understand what the customer need like delivering in time, great quality products. After few changes, Ben still provide good products for Orleans so that help Ben to gain trust in doing business, which strengthens their relationship.
3. In the past, Orleans’ priorities were only about quantity, doing the same business with familiar suppliers. Now Orleans has change that. They want to make profit, reduce cost associated with the elevators by cutting raw materials cost, and that would affect Ben’s business.
4. Ben should change his business model so that it would have him gain advantages. Even though Ben has long relationship doing business with Orleans, it may not help much with Orleans’ new priorities.
5. In the value chain, Ben’s company is an efficient manufacturer because they build a factory that has full of tools to bring out the best products. Besides, those products are always delivered in time since Ben understands Orleans’ business.
6. Ben’s company has to prove that they will always bring high quality products that in Orleans’ need. Compared to a loyal customer as Ben, it would be safer to doing business with, both relationship and physical distance. Besides, Ben has to prove that hiring Mexican