...Eldora Case Study 1) Q: What strategic objectives should this venture serve? A: Eldora Company’s main strategic objective should be to gain access into the Asian market, due to the market for the same kind of bikes over there is doubling annually, while the market in the United States has remained stagnant. Eldora should also attempt to maintain their strength that they have locally, due to them being the top mountain bike manufacturer in the United States. They should also take advantage of the lower labor and distribution costs in Asia by setting up facilities in that part of the world as well. 2) Q: Given the strategic objectives, what functions of the company might be relocated in this effort as well? A: The Eldora Company should place a manufacturing plant in Asia, due to the lower labor and production costs. In the same area, they should place their marketing department for the Asian market. It is important to move a marketing division over to the Asian market, due to American marketing strategies not necessarily working in Asia. Having a local plant would also help reduce the market risks, especially the trade barriers and exchange rates. This would also help the company interact with its emerging market. The Eldora Company should still keep their product development function in America, in order to maintain their signature high quality light frames. By keeping this function in America, the company can also continue perfecting skills in reverse engineering. ...
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...Richard Young September 12th, 2012 Eldora According to this case study, Eldora was considered a U.S. leading bicycle maker. One of the strategies that helped to this success was the fact that Eldora was a “home made” manufacturing. What this mean is that Eldora kept its productions centers in the same campus as its corporate offices; which were located in Boulder, Colorado. This “home made” strategy helped to the ultimately goal and of course growth of the company. Moreover, this caused improvements among the different sections of the company as well. This success was so efficient that Eldora’s sales and earnings had wonderful record levels, which made its operations vice president Sean Andrews believed that the strengths of the company was tied with their “reverse engineering” as well as its logistical and production capabilities. In other words Eldora’s products were of high quality. What so ever, the problem began when other companies started making great money by being able to produce bike products, and bikes in a very cheap cost. The products were about the same quality, but the cost of making the bicycles were in a greatly low cost in contrast to Eldora’s. This is why I totally believe that the strategic objective that Eldora should serve is to move their productions departments to where the labor and production is greatly low. There are some great opportunities on taking this strategic objective, such as: * Eldora is going to be able to find a high and sustainable...
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...Eldora is in an unfamiliar and awkward position. Having spent assets and years developing production facilities locally in Colorado they are faced with a future where the majority of growth will take place in Asia where several of their parts suppliers are already located. Capturing a significant portion of this growth is their first strategic objective. Because their competitors are relocating manufacturing to developing economies, Eldora is faced with allowing manufacturing cost to become a competitive disadvantage, and avoiding this is a second objective. Finally they greatly benefit from their relationship with the Italian manufacturer Rinaldi because it not only provides valuable intelligence but also access to European markets. Maintaining this relationship is the third strategic objective. In short Eldora needs to find a way to succeed in the growing Asian market while keeping their manufacturing costs competitive without damaging their relationship with Rinaldi. In order to achieve these objectives, Eldora should strongly consider one of two options. Either they should move only their manufacturing to reduce labor costs or they should move their marketing and product development teams along with manufacturing. The reason to move all three departments is because it allows Eldora to maintain their competitive advantage of a lean, flexible manufacturing system created by the proximity of those three departments. Modern communications reduce the inefficiency of...
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...A bike company's largest and most profitable in the United States. Proficient in market Eldora COMPANY 30% bike market in the USA. Eldora have COMPANY Main Concern of "creating value for shareholders and creating a comfortable working environment for all employees" Eldora COMPANY headed by Ann Reardon, where he has served as CEO at Eldora COMPANY OVER 13 Years. Immediate subordinates are Sean Andrews as Vice precident manufacturing and Dale Stewart as marketing vice precident. Eldora production now spread from the bike with cheap price range ($ 100 to $ 200) and for the price class expensive ($ 400 - $ 700). where for the low price range, the selling price of the product is more expensive than its competitors EDC but retailers still want to buy from EDC because the model used is always good, and the delivery is always on time. For expensive market Eldora COMPANY menjajakinya cooperation with other brands (Renaldi). Eldora COMPANY has some strategies that All production units are located on one site Workers at all levels is a human who likes to bike, follow the trends and are always looking for innovations Expansion into international markets through a joint venture with a local brand and other agreements Eldora Company faces the external environment with the dynamic growth of the bicycle market in the world for Americans only 2% per year while asia 4% for the year. At Eldora market bike purchase amount is less than 25% of the world market. While nearly 50% of the...
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...James P. johnson MBA 609 January 24, 2013 Case Study The Eldora Company Capture both the advantage of lower labor costs and proximity to Boulder by locating assembly in Mexico. Good strategy to try and capture the lower labor cost by locating assembly in Mexico. However, the overall growth in the USA had dropped to about 2 % and the Asian markets for the same kind of bikes were doubling annually which means that they focus should be mainly on capturing a share in the new market rather than focusing on only reduced labor. Open a small office in china staffed with one of their people to collect information about the Chinese market, distribution channels, local conditions and laws, as well as identify potential joint venture partners. In that way the management group could be clearer on how they should proceed. This is a very good strategy. The laws are different in many countries, and by taking the time to study how the Chinese markets operates would be a great idea. However, instead of hiring one of their people to operate the small office in china, you should hire a local person who already knows about the Chinese Laws. Being that this person is Chinese, the people would be very receptive to him, and he would have the information Eldora needs soon. Establish a joint venture whereby Eldora would provide the product and process knowledge and the joint venture would manage both the manufacturing and distribution capabilities. Joint ventures are an easy access...
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...for people that can not afford racing. People really want to do it but it is way too costly. Dirt track racing is an entertaining sport with more people getting involved. Very interesting sport. The sport has many different types of people. It has poor people, rich people. but there all the same at the dirt track. If we can load up the car on the trailer without a winch u still won. It is all a big family at the races. Racing is not about how long it takes you to get from the start to finish, it is the adventure you have along the way, the people you meet, and the unique moments you share. According to en.wikipedia.org there are over seven hundred dirt tracks in the United States. According to onedirt.com, the most popular racetrack is Eldora Speedway in Oklahoma. There are numerous types of tracks on which the racers race on. Different types of cars are involved in the racing industry. They cost outrageous amounts of money. Dirt track racing is an entertaining sport with more people getting involved. I am not going to stop doing it because I got hurt once. People get hurt in car wrecks every day, and they do not stop driving the car the rest of there life to work. It is my passion. It is what I want to do with my life. It is a part of what I do.- Tony Stewart. ...
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...Dell’s Supply Chain Management Strategy Build-to-order model, Dell, Direct model, PC Manufacturing, SCM, Supply Chain Case Study Abstract The focus of this case study is the supply chain management practices of Dell. Dell has been following its unique ‘direct build-to-order’ sales model for more than 20 years. Customers can plan their own configuration and place orders directly with the company via the phone or its Web site. Over the years, Dell’s supply chain efficiencies and direct sales gave it a competitive advantage. Can Dell regain its market leader position from HP? In 2006 however, Dell faced several problems. Many customers complained about long delays in supplies. Recall of Sony battery cells in its laptops brought undesirable media hype to the company. Increasing discontent of customers led to a slowdown in sales. Consequently, Dell lost its market leadership to Hewlett-Packard Co. (HP). Industry analysts felt that, with Dell’s competitors also improving their supply chains and matching Dell’s direct model, the company had been losing its competitive edge. Dell will have to bear additional costs with its foray into retail distribution thereby minimizing its cost advantage. Besides, profit margins of Dell will drop further since it will have to offer incentives to compete with HP in retail stores. Though Dell spruced up its product design and range but Apple is clearly far ahead of it. Many experts feel that such new initiatives will only distract Dell from its...
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...Finance Course: Health Care Finance Readings MBAHC−4 California College for Health Sciences MBA Health Care Program McGraw-Hill/Irwin abc McGraw−Hill Primis ISBN: 0−390−55313−1 Text: Advanced Financial Accounting, Sixth Edition Baker−Lembke−King Harvard Business School Accounting Cases Corporate Finance, Seventh Edition Ross−Westerfield−Jaffe Harvard Business Review General Management Articles Harvard Business School Finance Cases This book was printed on recycled paper. Finance http://www.mhhe.com/primis/online/ Copyright ©2005 by The McGraw−Hill Companies, Inc. All rights reserved. Printed in the United States of America. Except as permitted under the United States Copyright Act of 1976, no part of this publication may be reproduced or distributed in any form or by any means, or stored in a database or retrieval system, without prior written permission of the publisher. This McGraw−Hill Primis text may include materials submitted to McGraw−Hill for publication by the instructor of this course. The instructor is solely responsible for the editorial content of such materials. 111 FINAGEN ISBN: 0−390−55313−1 Finance Contents Ross−Westerfield−Jaffe • Corporate Finance, Seventh Edition I. Overview 1 1 20 34 34 69 97 129 151 151 192 192 214 214 248 1. Introduction to Corporate Finance 2. Accounting Statements and Cash Flow II. Value and Capital Budgeting 4. Net Present Value 5. How to Value Bonds and Stocks 7. Net Present Value and...
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