Preview

Business Studies: Case Study "Crumpler"

Good Essays
Open Document
Open Document
3959 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Business Studies: Case Study "Crumpler"
Case study: Crumpler
Topic 1- operations

* Product offered * heavy duty bags for bike couriers

Role of operations management
Aim
* to differentiate the business’s products from its competitors rather than using a cost leadership strategy.

Crumpler’s aim has been achieved through: * a better quality product * a vast variety of products in its range * incorporation of new technology * Clever design

Influences on Crumpler’s operations
Globalisation
* Globalization has allowed crumpler to sell to more countries and markets. The expansion has allowed them to open stores in New York, Toronto and Singapore. * Crumpler bags are not available in Greece, Japan, and Hong Kong, China. * Its exports are at 6 million or 50% of total sales. * Recently, they negotiated with Apple, allowing them to provide their bags to more consumers. * Crumpler can outsource its manufacturing and now has a global supply chain. Operations costs have reduced as the other countries had lower costing inputs and labour. |

Economic * There have been many changes recently, * the cost of oil has raised highly-due to the fact that crumpler’s bags using lots of nylon in its productions, its costs have risen highly. * the economy of Europe and Asia have fluctuated-due to the economic slowdown and the global financial crises, sales globally have dropped immensely. * cost of labour in Asia has risen-Asia’s labour |

Technology * There have been recent developments in the production of clothing and communication. Computer aided manufacturing and designing was introduced allowing efficiency to be increased. * Headquarters started using email in its communication to allow faster transmission of messages within the company. * Three dimensional designing software allowed them to create new products virtually and, it could be viewed from a few perspectives. |

Design and manufacturing process * All products are designed in

You May Also Find These Documents Helpful

  • Good Essays

    CH 11 ACC 350 Study Guide

    • 824 Words
    • 3 Pages

    STRATEGIC COST MANAGEMENT BASIC CONCEPTS The most important strategic elements for a firm are its long-term growth and survival. Strategic decision making involves choosing among alternative strategies with the goal of selecting a strategy, or strategies, that provides a company with a reasonable assurance of long-term growth and survival. The key to achieving long-term growth and survival is to gain a competitive advantage. Competitive advantage is the process of creating better customer value for the same or lower cost than that of competitors or creating equivalent value for lower cost than that of competitors. Customer value is the difference between what a customer receives (customer realization) and what the customer gives up (customer sacrifice). The total product is the complete range of tangible and intangible benefits that a customer receives from a purchased product. A strategy can be defined as choosing the market and customer segments the business unit intends to serve, identifying the critical internal business processes that the unit must excel at to deliver the value propositions to customers in the targeted market segments, and selecting the individual and organizational capabilities required for the internal, customer, and financial objectives. Three general strategies for obtaining a competitive advantage Cost leadership Product differentiation Focusing A company is pursuing a cost…

    • 824 Words
    • 3 Pages
    Good Essays
  • Good Essays

    When pursuing a cost-leadership strategy, the focus of competition is on cost parity, while offering…

    • 16463 Words
    • 79 Pages
    Good Essays
  • Good Essays

    capsim strategies

    • 2515 Words
    • 9 Pages

    A Broad Cost Leader strategy maintains a presence in all segments of the market. The company will gain a competitive advantage by keeping R&D, production and material costs to a minimum, enabling the company to compete on the basis of price, which will be below average. Automation levels will be increased to improve margins and to offset second shift/overtime costs.…

    • 2515 Words
    • 9 Pages
    Good Essays
  • Good Essays

    Benihana vs Broadway Pizza

    • 1443 Words
    • 6 Pages

    | * Low cost (competitor) * Labor cost * Strategic Marketing * Low waste * Lower overhead…

    • 1443 Words
    • 6 Pages
    Good Essays
  • Powerful Essays

    A cost leadership strategy is where a business aims to be the lowest cost manufacturer within its industry. The products are the basic, no-frills type with fewer features, perhaps lower quality and using low-cost packaging.…

    • 6112 Words
    • 25 Pages
    Powerful Essays
  • Powerful Essays

    Cost leadership: This strategy emphasizes efficiency. By producing high volumes of standardized products, the firm hopes to take advantage of economies of scale and experience curve effects. The product is often a basic no-frills product that is produced at a relatively low cost and…

    • 2347 Words
    • 10 Pages
    Powerful Essays
  • Best Essays

    Marketing Research Paper

    • 1346 Words
    • 6 Pages

    References: Chase, R. E. (2006). Operations Management for a Competitive Advantage 11e. . New York: The McGraw Hill Companies.…

    • 1346 Words
    • 6 Pages
    Best Essays
  • Satisfactory Essays

    There are two alternatives in the business-level strategy. One is cost leadership and another one is differentiation.…

    • 308 Words
    • 2 Pages
    Satisfactory Essays
  • Powerful Essays

    Operations management refers to all levels of an organisation and how best to efficiently convene, fund, maintain and maximise its services and/or operations, both internal and external. The core goal/objective of operations management it to maximise outputs while reducing and minimising the inputs required to achieve the desired results.…

    • 2732 Words
    • 9 Pages
    Powerful Essays
  • Satisfactory Essays

    It is possible for a company to continue a cost leadership strategy and a differentiation strategy simultaneously but it does not work for everyone. Some businesses rather follow the low cost way by striving for efficiencies and economies of scale rather than focusing on differentiating themselves from the competitors in a way other than price. Some companies like Toyota have actually joined both. Porter explains that a company lacking one of the competitive strategies is easily left with no competitive advantage. Businesses that join overall low cost and high quality differentiation strategy offer high quality and low prices which eventually complicates things following cost leadership.…

    • 269 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    the organization has avoided defining their value proposition as the “low-cost leader,” and have made it their mission to differentiate themselves through customer service, market innovation and delivering additional value to their customers.…

    • 583 Words
    • 3 Pages
    Good Essays
  • Satisfactory Essays

    Swot Anaysis of Hugo Boss

    • 334 Words
    • 2 Pages

    • Ongoing expansion of directly operated stores particularly in the growth regions of the world…

    • 334 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    Cost leadership strategy can be defined as an organisation’s ability to achieve lower costs relative to competitors through productivity and efficiency through productivity and efficiency improvements, elimination of waste, and tight cost control (Horngren, Datar, Foster, Rajan & Lttner, 2009, p. 464). In this case, Ronaldson Promotional Material Company uses the cheap promotion items and cheap advertising slogans to instead of the higher quality advertisement. It reduce their cost on the production, and then their customers will be changed, because there is a different quality production and then the customers’ demand need to be changed. In addition, the price will be decreased because the lower cost, that may increase the quantity of production sales. It means there is still profitable…

    • 713 Words
    • 3 Pages
    Good Essays
  • Better Essays

    Operation Management

    • 1875 Words
    • 8 Pages

    Operations management is important to an organization’s managers for at least two reasons. First, it can improve productivity, which improves an organization’s financial health. Second, it can help organizations meet customers’ competitive priorities.…

    • 1875 Words
    • 8 Pages
    Better Essays
  • Good Essays

    which a firm can compete to be a leader in its industry: cost or product uniqueness. To compete…

    • 787 Words
    • 4 Pages
    Good Essays

Related Topics