The California-Illini Manufacturing Company's (Ci)

Good Essays
The California-Illini Manufacturing Company's (CI)
Q1. What is the firm's competitive strategy? Does the strategy seem appropriate?
In the strictest sense, competitive strategy refers to how a company can gain a competitive advantage through a market while finding a distinctive way of competing. California-Illini Manufacturing Company is able to compete in the Global industry because they are handmade tillage and cultivating tools and they are American made; they use expensive metal pieces and are hand metal forged, along with using manual electric arc welders. There is in most every market the opportunity for handmade products, for example Lamborghini cars are hand made vehicles, which are more expensive, but because of the extensive labor they are considered to be better built. The industry however, is very competitive in American and the global market, and there are cheaper options available. With that said I think there is still a substantial market for the rugged, handmade, American tools and they should stick to their design strategy and use their family built, third- Generation Company known for the quality of tools as their trademark.
Q2. What motivated the cost reduction strategy? Did the cost reduction strategy work? Why?
The cost reduction strategy occurred because during the early to mid 1980’s during President Reagan’s first term an economic downturn struck companies, this depressed market caused many businesses like CI to struggle. Their inventory was down and the cash flow was poor, the company began to look into cutting cost, increasing prices, technology and productivity. In the short run (1989) the cost cutting strategy failed, operating expenses were up 20%, along with increased inventories by 24% and net profits continued to slip!
Q3. How did CI's standard cost system affect the cost reduction strategy? CI’s cost system was developed to measure performance and profit potential, each materials and labor input is given and production

You May Also Find These Documents Helpful

  • Good Essays

    Thomas Manufacturing Company Mr. Thomas, president of Thomas Manufacturing Company, and Mr. McDonnell, the vice president, were discussing how future economic conditions would affect their product, home air purifiers. They were particularly concerned about cost increases. They increased selling prices last year and thought another price increase would have an adverse affect on sales. They wondered if there was some way to reduce costs in order to maintain the existing price structure. McDonnell…

    • 565 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

    Auditing in a Cis

    • 8552 Words
    • 35 Pages

    Page 1 of 15 CEBU CPAR CENTER Mandaue City, Cebu AUDITING THEORY AUDITING IN A COMPUTER INFORMATION SYSTEMS (CIS) ENVIRONMENT Related PSAs/PAPSs: PSA 401; PAPS 1001, 1002, 1003, 1008 and 1009 PSA 401 – Auditing in a Computer Information Systems (CIS) Environment 1. Which statement is incorrect when auditing in a CIS environment? a. A CIS environment exists when a computer of any type or size is involved in the processing by the entity of financial information of significance to the audit…

    • 8552 Words
    • 35 Pages
    Powerful Essays
  • Satisfactory Essays

    CIS 429

    • 639 Words
    • 2 Pages

    and efficient. I personally believe that Apple is already at the top of its class, so BPR would do nothing but help them to grow. Chapter 3 Questions: 1. Explain why the supply chain can dramatically impact a company’s base performance. -The supply chain can dramatically impact a company’s base performance in many ways. The supply chain has multiple stages and typically involves more than one party. In order for the supply chain to correctly flow through its stages, every party needs to play their…

    • 639 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    Cis Environment

    • 1270 Words
    • 6 Pages

    1. Distinguish between internal control in a CIS environment and in non-CIS environment. A CIS environment exists when a computer of any type or size is involved in the processing by the entity of financial information of significance to the audit; whether that computer is operated by the entity or by a third party. Many of the control procedures used in manual processing also apply in a CIS environment. Examples of such control procedures include authorization of transaction, proper segregation…

    • 1270 Words
    • 6 Pages
    Good Essays
  • Good Essays

    Manufacturing

    • 547 Words
    • 3 Pages

    hurting the company’s sales. And lots of loyal customers slowly turned to its competitors. Causes: Several problems contributed to OTD have been identified by the management of the company. The first one they identified was the failure to recognize the lead times of the raw materials. The purchasing department always had to order materials at the minute when the parts in the stock room were almost empty. The company had to pay extra to expedite their orders, which drove the company’s operating…

    • 547 Words
    • 3 Pages
    Good Essays
  • Good Essays

    California

    • 2415 Words
    • 10 Pages

    and Society Instructor Scott Axton 2 May 2013 ABSTRACT Some states have yet to join those states that have put in effect the Three Strike Law. Even though many states have implemented the Three Strike Law it still has many setbacks. California has the strictest laws on the Three Strike Law. While experts thought this would be a good idea it causes issues like overcrowding in prisons and a much bigger budget plan. Proposition 36 was voted to reform the Three Strike Law to reduce sentences…

    • 2415 Words
    • 10 Pages
    Good Essays
  • Good Essays

    Cis 111

    • 790 Words
    • 4 Pages

    Assignment 2: Logical Design, Part 1 Professor Cohen CIS-111 April 15, 2013 Advantages of Relational Model The relational model would provide Acme Global with a better understanding of the data needs of their organization. A Relational model offers data independence and efficient access. “The conceptual and external schemas provide independence from physical storage decisions and logical design decisions respectively.” (Ramakrishnan, 2007) “The benefits of using the relational model would…

    • 790 Words
    • 4 Pages
    Good Essays
  • Powerful Essays

    Business Sustainability Assessment Worksheet: California R&D Use this worksheet to conduct a sustainability audit of Riordan Manufacturing, a virtual plastic injection molding company. Fill in all necessary information. Production stages that do not occur at this plant are marked as N/A. Section 1: General Information Company: Riordan Manufacturing, San Jose, California Products: Assorted plastic products and testing new product designs and production Section 2: Production For each…

    • 1275 Words
    • 6 Pages
    Powerful Essays
  • Satisfactory Essays

    Company's Profile

    • 342 Words
    • 2 Pages

    BIG HEART FINANCING COMPANY, LTD Big Heart Financing Company, LTD is a financing company composed of five(5)members, namely; Krizzia Mae Baldonasa, Ivory Deramos, Ro-Ynn Balunan, Catherine Canaway and Ever Lumawag. The company is located at 78A Lopez Jaena Street, Jaro, Iloilo City with a starting capital of P7,000. The mission of the company is to provide reasonable monetary lending services especially to the deprived Filipinos. At Big Heart, we aim to aid Filipinos who are in need of financial…

    • 342 Words
    • 2 Pages
    Satisfactory Essays
  • Satisfactory Essays

    California

    • 645 Words
    • 3 Pages

    ENVS 331 SPRING 2013 FINAL EXAM STUDY QUESTIONS 1. In basic terms, what is the difference between imperialism of the “traditional” European variety and the “neo-imperialism” practiced by the US during the 20th century? 2. How did World War II contribute to the end of European imperialism (consider the phenomenon of “imperial overstretch,” which you should be able to define)—and enable the expansion of US influence overseas? (Consider the impact of World War II on the European imperialist…

    • 645 Words
    • 3 Pages
    Satisfactory Essays