The document provides background information on Crown Cork & Seal in 1989. It discusses the metal container industry structure, trends towards in-house manufacturing, plastics, glass, and aluminum cans. It also profiles Crown Cork & Seal's history, challenges under new leadership, competitors, and recommendations for entering plastics and acquiring Continental Can. Analysis includes a SWOT analysis, 5 forces analysis, value chain analysis, and corporate, business, and functional strategies.
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Challenges
Inaccurate forecasts of retailer demand has become a major issue at Obermeyer. The two major factors that made this task more difficult was the increase in product variety and intense competition in market. Second challenge the company had faced was to allocate production between Hong Kong and China. Although Obermeyer had 1/3 of Parka production in China for 1992, this year the organization insisted on increasing the sales to half. There was difference in quality and labor rate at China and Hong Kong which made allocation decision more difficult.
Another challenge the company faced was the larger lead time. The company had supplies of raw materials from various countries which resulted in delayed production time. Organization challenges along with competition from competitor companies were major challenges the company had faced.
Analysis
From the sales predictions that the six managers forecasted, a coefficient of variation (COV) was determined, which indicated the level of spread of the forecasted data. The COV values were broadly divided into two levels, the low risk group and the high risk group. Every value below 0.2 were considered to be among the lower risk items and all the items above COV value of 0.2 were considered to be of higher risks. Once the risk levels of each item were determined, the quantities of items to be produced in first and second production cycles could be calculated with least risk. 70% of the entire sales forecast for the lower risk items were ordered to be produced. Only 30% of higher risk items were ordered to be produced in the first production cycle. The quantities which amounted to 1200 were manufactured in China and that which were close to 600, were manufactured in Hong Kong in the first production cycle.
Once the 80% of the orders were received from the retailers from the Vegas show, a clear picture of the demand forecast could be obtained, according to which the rest of the items could be manufactured either in China or Hong Kong. Referring to exhibit 1, the four products to be produced in China in the first production cycle are: Assault, Seduced, Entice and Electra. These four products have COV less than 0.2. However Gail, Daphne, ISIS, Anita, Teri, Stephanie are produced in Hong Kong for the first production cycle as they have a high level of risk associated with it.
Conclusion
Short term operational changes
o Decrease lead time by obtaining raw materials from geographically closer locations to ensure timely delivery
Long term operational changes
o Cross scaling Chinese labors which would help the company produce quality and reliable goods at a cheaper price
Clique Pens - Case Study Solution by Kamal Allazov (Essay type)Kamal Allazov (MSc.)
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A marketing Case Study of Natureview Farm, an organic yogurt manufacturer. This analysis was performed by E. Santhosh Kumar, IIT Madras, during an internship with Prof. Sameer Mathur, IIM Lucknow.
Harvard Business School Case Study on Mountain Man Brewing Company by Shashank Srivastava, IET Lucknow under the guidance of Prof. Sameer Mathur, IIM Lucknow.
Challenges
Inaccurate forecasts of retailer demand has become a major issue at Obermeyer. The two major factors that made this task more difficult was the increase in product variety and intense competition in market. Second challenge the company had faced was to allocate production between Hong Kong and China. Although Obermeyer had 1/3 of Parka production in China for 1992, this year the organization insisted on increasing the sales to half. There was difference in quality and labor rate at China and Hong Kong which made allocation decision more difficult.
Another challenge the company faced was the larger lead time. The company had supplies of raw materials from various countries which resulted in delayed production time. Organization challenges along with competition from competitor companies were major challenges the company had faced.
Analysis
From the sales predictions that the six managers forecasted, a coefficient of variation (COV) was determined, which indicated the level of spread of the forecasted data. The COV values were broadly divided into two levels, the low risk group and the high risk group. Every value below 0.2 were considered to be among the lower risk items and all the items above COV value of 0.2 were considered to be of higher risks. Once the risk levels of each item were determined, the quantities of items to be produced in first and second production cycles could be calculated with least risk. 70% of the entire sales forecast for the lower risk items were ordered to be produced. Only 30% of higher risk items were ordered to be produced in the first production cycle. The quantities which amounted to 1200 were manufactured in China and that which were close to 600, were manufactured in Hong Kong in the first production cycle.
Once the 80% of the orders were received from the retailers from the Vegas show, a clear picture of the demand forecast could be obtained, according to which the rest of the items could be manufactured either in China or Hong Kong. Referring to exhibit 1, the four products to be produced in China in the first production cycle are: Assault, Seduced, Entice and Electra. These four products have COV less than 0.2. However Gail, Daphne, ISIS, Anita, Teri, Stephanie are produced in Hong Kong for the first production cycle as they have a high level of risk associated with it.
Conclusion
Short term operational changes
o Decrease lead time by obtaining raw materials from geographically closer locations to ensure timely delivery
Long term operational changes
o Cross scaling Chinese labors which would help the company produce quality and reliable goods at a cheaper price
Clique Pens - Case Study Solution by Kamal Allazov (Essay type)Kamal Allazov (MSc.)
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China's chemical market is the world's largest which currently faces production overcapacity, slow growth of local demand, and high competition intensity. In this white paper, Solidiance addresses the questions on how to grow and maintain market position as many emerging competitors are moving up to the value chain through product upgrade, continuous innovation, and business expansion.
The answers are “The New Chemical Era in China” which will come up as the phenomenon resulting from the ability of different chemical companies to create their market identities to gain competitiveness.
This phenomenon is expected to gradually open new opportunities in development of different industry sectors, such as automotive, energy, construction, as well as electrical & electronic (E&E).
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[Note: This is a partial preview. To download this presentation, visit:
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Sustainability has become an increasingly critical topic as the world recognizes the need to protect our planet and its resources for future generations. Sustainability means meeting our current needs without compromising the ability of future generations to meet theirs. It involves long-term planning and consideration of the consequences of our actions. The goal is to create strategies that ensure the long-term viability of People, Planet, and Profit.
Leading companies such as Nike, Toyota, and Siemens are prioritizing sustainable innovation in their business models, setting an example for others to follow. In this Sustainability training presentation, you will learn key concepts, principles, and practices of sustainability applicable across industries. This training aims to create awareness and educate employees, senior executives, consultants, and other key stakeholders, including investors, policymakers, and supply chain partners, on the importance and implementation of sustainability.
LEARNING OBJECTIVES
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3. Identify and define best practices and critical success factors essential for achieving sustainability goals within organizations.
CONTENTS
1. Introduction and Key Concepts of Sustainability
2. Principles and Practices of Sustainability
3. Measures and Reporting in Sustainability
4. Sustainability Implementation & Best Practices
To download the complete presentation, visit: https://www.oeconsulting.com.sg/training-presentations
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Memorandum Of Association Constitution of Company.pptseri bangash
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A Memorandum of Association (MOA) is a legal document that outlines the fundamental principles and objectives upon which a company operates. It serves as the company's charter or constitution and defines the scope of its activities. Here's a detailed note on the MOA:
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Name Clause: This clause states the name of the company, which should end with words like "Limited" or "Ltd." for a public limited company and "Private Limited" or "Pvt. Ltd." for a private limited company.
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Registered Office Clause: It specifies the location where the company's registered office is situated. This office is where all official communications and notices are sent.
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Capital Clause: This clause specifies the authorized capital of the company, i.e., the maximum amount of share capital the company is authorized to issue. It also mentions the division of this capital into shares and their respective nominal value.
Association Clause: It simply states that the subscribers wish to form a company and agree to become members of it, in accordance with the terms of the MOA.
Importance of Memorandum of Association:
Legal Requirement: The MOA is a legal requirement for the formation of a company. It must be filed with the Registrar of Companies during the incorporation process.
Constitutional Document: It serves as the company's constitutional document, defining its scope, powers, and limitations.
Protection of Members: It protects the interests of the company's members by clearly defining the objectives and limiting their liability.
External Communication: It provides clarity to external parties, such as investors, creditors, and regulatory authorities, regarding the company's objectives and powers.
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Binding Authority: The company and its members are bound by the provisions of the MOA. Any action taken beyond its scope may be considered ultra vires (beyond the powers) of the company and therefore void.
Amendment of MOA:
While the MOA lays down the company's fundamental principles, it is not entirely immutable. It can be amended, but only under specific circumstances and in compliance with legal procedures. Amendments typically require shareholder
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Cracking the Workplace Discipline Code Main.pptxWorkforce Group
Cultivating and maintaining discipline within teams is a critical differentiator for successful organisations.
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1. Crown Cork & Seal in 1989
MGMG555 Competitive Strategy and Industry Structure
Instructor: Sarayuth Saengchan, Ph.D.
College of Management, Mahidol University
Trimester: 3/2013 Date: 01/02/2014
5. Industry Structure
Crown Cork & market share
Seal
Ball Corporation
5%
5%
Renolds Metals
5%
Centinental Can
13%
American
National
44%
Other
28%
Five firms dominated the $12.2 billion U.S. metal can industry in 1989, with an aggregate 61% market share
6. Price
Pricing is very competitive.
To lower costs, managers sought long runs of standard items and
offer volume discounts.
7%
15% increase in aluminum can
sheet price after guaranteed
volume prices
Can industry operating margins fell from
7% to 4% between 1986-1989 because of
7% increase in beverage can production
capacity between 1987-1989
Increase number of the major brewers
producing containers in house
The consolidation of soft drink
bottlers throughout the decade
4%
7. Customers
Top U.S. Users of Containers, 1989
Coca-Cola Company
Anheuser-Busch Companies Inc.
PepsiCo Inc.
The Seagram Company, Ltd.
8. Distribution
Manufacturers located their plants close to customers to minimize transportation costs
The primary cost components of the metal can include
RM 65 %
Labor
12%
Transporta
tion 7.5%
Foreign markets were served by
joint ventures, foreign
subsidiaries, affiliates of U.S.
firms and local overseas firms.
Cost
Beverage can producers preferred
aluminum to steel because of lighter
weight and lower shipping costs
9. Manufacturing
Beverage segment used two-piece cans
: The two-piece can line with the peripheral equipment
cost about $20-25 million per line
Food and general packaging segment used three-piece cans:
The three-piece can line with the equipment cost about
$8.5-9 million per line
Most plants had 12 to 15 lines for the increased flexibility of handling more
than one type of can at once
10. Suppliers
In 1970, steel accounted for 88% of metal cans, but dropped to 29% in 1989
Being lighter, more consistent quality and more economical to recycle, by 1989
aluminum accounted for 99% of the beer and 94% of the soft drink metal can
The country’s three largest aluminum producers were
Compara ve Sale Performance of Major Aluminum
Suppliers, 1988 (dollars in millions)
Alcan Aluminum
9,795.30
8,529.00
5,567.10
7,767.00
6,797.00
4,283.80
1988
1987
ALCOA
5,956.00
4,667.20
3,638.90
1986
Reynolds Metalsa
5,467.00
5,718.00
5,750.80
5,162.70
3,728.30
3,415.60
1985
1984
11. The metal container industry trend
In-house
manufacture
Plastics
Glass
Soft drinks &
aluminum cans
Diversification
& consolidation
12. In-house
manufacture
• Producing cans for their own company use—accounted for
approximately 25% of the total can output in 1989.
• Much of the expansion in in-house manufactured cans, occurred at
plants owned by the nation’s major food producers and brewers.
• Brewers found it advantageous to invest in captive manufacture because
of high-volume, single-label production runs.
• Soft drink bottlers were also geared to low-volume, multilabel
output, which was not as economically suitable for the in-house can
manufacturing process.
13. Plastics
Plastics was the growth leader
in the container industry.
1980
1989
• Share 9%
• Share 18%
Plastics could retain carbonation and
prevent infiltration of oxygen less than 4
months while aluminum cans held
carbonation for more than 16 months
U.S. brewers expected beer containers to
have at least a 90-day shelf-life.
14. Glass
Glass
Glass bottles accounted
for only 14% of domestic
soft drink sales
Soft drink bottlers
preferred the metal can
to glass because of a
variety of logistical and
economic benefits:
faster filling speeds
lighter weight
compactness for inventory
transportation efficiency
15. Soft drinks &
aluminum cans
The soft drink industry of metal
cans shipped accounted for
29% in 1980
42% in 1989
Aluminum’s penetration could be
traced to several factors:
(1) weight advantage over glass and steel
(2) ease of handling
(3) a wider variety of graphics options
provided by multipack can containers
(4) consumer preference
Aluminum’s growth was also
supported by the vending
machine market
16. Diversification
& consolidation
Low profit margins, excess capacity, and rising material
and labor costs prompted a number of corporate diversifications and
subsequent consolidations throughout the 1970s and 1980s.
For example, American Can reduced its dependence on domestic
can manufacturing, moving into totally unrelated fields, such as
insurance.
18. Company History
1891 :
1920 :
Crown Cork & Seal Company
Patent ran out, competitive became serve and nearly
bankrupted the company
1927 : Crown was brought by Charles McManus
1930 : Crown prospered, selling more than half of the United States
and world supply of the bottle cap --- McManus anticipated the
success of the beer can and diversified into can making
1946 : McManus died, the company ran on momentum
Try to expand into plastic and ludicrous diversification into metal
bird
1955 : Partnership with Connelly Container, Inc.
1956 : Connelly began buying stock and was asked to be an outside
director
1957 : Crown teetered on the Verge of bankruptcy John Connelly took
over the president.
His recue plan was simply -- just common sense--
19. John Connelly’s action
To pare down
the organization.
Reduce HQ staff
by half to reach
a lean force of 80.
Abandoning its
paternalistic culture
to simply functional
organization.
To institute the
concept of
accountability.
Reduce payroll
by 24% and
eliminated 1,647 jobs.
Establishing Crown
managers as
“owner operators”
Focused on the
company’s debt.
Paid off the bank
Introduced sale
forecasting dovetailed
with new product
and inventory control.
Plants managers
“Climbed out of the
take responsibility
for plant profitability coffin and was sprinting”
and including
allocated costs.
20. Connelly’s Strategy
Research and Development (R&D)
Crown’s technology strategy focused on enhancing the existing product line. We
do have tremendous skills in die forming and metal fabrication.
Marketing and customer service
Crown’s manufacturing emphasis on flexibility and quick response to customer’s
needs supported its marketing emphasis on putting the customer first.
Financing
Connelly then steadily reduced the debt/equity ratio from 42% in 1956 to 18.2% in
1976 and 5% in 1986.
International
Between 1955 and 1960, Crown received what were called “pioneer rights” from
many foreign governments aiming to build up the industrial sectors of their countries.
Performance
Connelly’s strategy met with substantial success throughout his tenure at Crown.
21. Avery’s Challenge
Growing opportunities in plastic closures and
glass containers.
Acquisition of Continental Can Canada
(CCC)
25. Recommendation
Entrance into the plastic container industry
Pros
•Market gap in the container
Cons
• Portion of metal can more than
industry
plastic container
• Decreasing shipping cost
• Not completed loop of recycle
because of lightweight
• Not core competency
• Developed in various pattern
•Allowed carbonation to escape in
•Made of natural resources
less than 4 months
(Petroleum)
26. Recommendation
Acquire the Continental can company
Pros
•Getting more market share
•Getting plastic container line
manufacturing from Continental
Cons
• Acquiring conflict in culture
• Strong competition
can
• Increasing trend of in-house
•Increasing bargaining power
can manufacturing
against from supplier and
customer
•Expansion in world wide
28. SWOT Analysis
Strength
Weekness
•
•
•
•
• Lack of product diversity
• Short of R&D
Cost efficiency
Product differentiate
Customer relationship
Environmental care
Growth Strategy:
Expansion Globally
Opportunities
Threats
• Chance to consolidation
• Globalization /Pioneer
rights
•
•
•
•
Slow growth rate
Substitutable
Emerging plastic market
Challenge from
buyers/providers
29. Five Forces Analysis
(Low)
Threat of New
Entrants
(High)
Bargaining
Power of
Suppliers
(High)
Rivalry among
Existing Firms
(High)
Threat of
Substitute
Products
(High)
Bargaining
Power of
Buyers
30. Five Forces Analysis
Rivalry among Existing Firms (High)
-
5-6 big competitors
Also be supplier => Reynolds Metals
New production technology => Reynolds Metals
New product design => Ball Corporation
Bargaining Power of Buyers (High)
- Top 5 soft drinks (Coca- Cola Company , Anheuser-Busch
Companies Inc., Pepsi co Inc., and Coca-Cola Enterprises
Inc.)
31. Five Forces Analysis
Bargaining Power of Suppliers (High)
- Big 3 aluminum packaging producer => Alcoa, Alcan and
Reynolds Metals
- Only one aluminum can producer => Reynolds Metals
Threat of Substitute Products and Services (High)
-
Plastic and glass
Plastic => 18% growth in 1989 (from 9% in
1980), lightweight and more convenient
Threat of New Entrants (Low)
- Vertical and horizontal integration
32. Crown Cork’s Value Chain
focused on
enhancing the
existing product line
1.reduced (payroll by
24%) 1,647 jobs.
2. Change Divisional
Line to “Owner
Operators”
Sale Forecasting +
Manufacturing
1.closing down the
Philadelphia facility
2. new and
geographically
dispersed plants
emphasized quality,
flexibility, quick
response to customer needs
flexibility
and quick response
to customer’s needs
35. Business Strategy
Product & Services
Concentric
diversification
strategy
Marketing
New Market
Management
Innovation
R&D
Production
Recycle (Green
technology)
Supply chain
36. Functional Strategy
Manufacturing
Quality, Flexibility, and
Quick
R&D
Innovation on customer
requests
Product
Focus on metal forming
& Fabrication
Marketing &
Service
international markets
Good Relationship with
Customer