P2-45: Strategic Analysis, the Balance Scorecard, and Value Chain Analysis; The Packing Industry
Question 1: Describe Dana Company’s new strategic competitive position.
The Dana Packaging Company has chosen a differentiation strategy. This is supported by the shift to producing packaging for high end products. These products require more technological sophistication and better materials for their packaging so as a result Dana is making their packaging more study, colorful, attractive, and better sealing. The other are that Dana has made it a point to differentiate is in their filling process. The packages are filled only at Dana-owned plants where they stress safety, cleanliness, and low cost to its customers in order to retain a high reputation in their quality of the filling process.
Question 2: Develop a value chain for Dana. What are its opportunities for cost reduction and/or value enhancement?
Value Chain for Dana Packaging Company
Production of pulp paper
| Produced in Dana’s mills around the world. Some pulp material is purchased from recycling operators.
| Conversion of pulp paper into paperboard
| Produced at Dana’s plants that are located near the pulp mills or purchased from outside vendors.
| Coating of paperboard
| Process is done at separate plants owned by Dana. This process is occasionally outsourced to other manufacturers.
| Filling of containers
| The final step is the process of filling the containers with the food or other product. Done exclusively at Dana-owned plants.
Opportunities for cost reduction and value enhancement
Dana’s opportunities for cost reduction include outsourcing some of the manufacturing to outside vendors, which would improve speed, timeliness and quality. Dana should contract out the pulp production process to recycling operators rather than using its own valuable resources to produce the pulp material. By doing this, the company could free-up plant space...
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