Memo To: Jack Clark Cc: Mozaffar Khan‚ Derek Johnson From: Mauricio Sadi Andrade Date: March 15‚ 2010 Subject: Lehigh ’s 1993 product mix EXECUTIVE SUMMARY The objective of this memo is to recommend you a product mix for Lehigh in the year of 1993 based on profit calculations and other business considerations. Recommendation: 1993 product mix should include only High Speed Based on an approach resultant from the combination of ABC plus Theory of Constraints (TOC)‚ I recommend
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Lehigh Steel Background- Lehigh Steel was founded in 1913 and it manufactures specialty steels for high strength‚ high use applications. In 1975 it was acquired by Palmer due to its ownership of Continuous Rolling Mill‚ a specialized equipment that convert steel intermediate shape to wire for Palmer’s bearing. The industry as a whole is highly competitive‚ even a small change in price could alter customers’ consumption decision greatly‚ keeping costs down is therefore‚ one of the most important
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Executive Summary Lehigh Steel is a manufacturer of speciality steels for high strength‚ high use applications. Its financial performance has generally trended wit but outperformed the industry as a whole. Following the general recessionary trend of the market‚ Lehigh Steel reported record losses in 1991 after posting record profits in 1988. This had led to an increasing need to rationalizing Lehigh Steel’s product mix. Traditionally‚ Lehigh Steel has followed Standard Cost Method for cost accounting
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Lehigh Steel: The Case for Activity Based Costing and The Theory of Constraints Introduction: Lehigh Steel is a steel and alloy production company with a huge range of products. It was able to reach a record profit in 1988‚ but went down to a record loss by 1991. Lehigh is owned by a parent company‚ The Palmer Company who’s a global manufacturer of alloy and steel and were interested in Lehigh’s specialised equipment to allow them to gain a competitive advantage. Palmer had acquired Lehigh
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2. The profits are different because the costs are allocated differently in the three methods. In the standard-cost method‚ steel profits were a function of prices‚ costs and volume. Product weight (pounds) was the primary unit of measure for standard cost‚ which included materials‚ labor‚ direct manufacturing expense and overhead cost categories. Direct material and direct labor are based on the bill of materials and routings. Direct manufacturing costs were allocated to products based on machine
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Bibliography: Bhaskar Chakravorti. (2010). Finding competitive advantage in adversity. Harvard Business Review 103-108. Prepared by: Abie89
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Harvard Business Case: Pillsbury Cookie Challenge 1. What are the challenges that Ivan Guillen faces in his role as the marketing manager of the RBG business? What is the team currently doing to support the RBG cookies segment? Who is the team currently targeting? Mr. Guillen is facing the problem regarding the growth of volume in the segment of the Refrigerated Baked Goods (RBG). His main concern was that as the refrigerated cookie sector is the most profitable and in contrast to market volume
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Theodore Levitt’s “Marketing Myopia‚ ” published using the Harvard Company Review inside of 1960‚ provides excellent perspective throughout the mind of your respective customer. Over forty a very long time later‚ the essay may be relevant along with insightful‚ ready with suggestions about revenue‚ marketing‚ along with reinvention. People who focus on marketing strategy‚ various predictive techniques‚ and the customer’s value can go beyond myopia. This may entail the use of long-term benefit objectives
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Harvard Business Case Analysis How would you categorize Kearney’s commitment to the company? How might you change or maintain this commitment? Eugene Kearney is very committed to Old Colony Associates (OCA). Kearney is committed in that he has been with the company for 13 years‚ loves going to work every day and aspires to maintain a higher level management position. However‚ he clearly needs to make improvements to his current level of commitment to OCA. Kearney needs to realize that commitment
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When I first started to think about writing a paper for this assignment my initial thought was‚ “just get your thoughts onto paper and you can rearrange for flow‚ spelling‚ grammar‚ etc. This shouldn’t be too difficult”. About an hour later I realized three things: (1) I had never truly completed a meaningful self-analysis‚ (2) This was going to take quite a bit longer than I intended‚ and (3) Just how important clearly and thoroughly completing a self-analysis & career outlook is. I continued
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