...The Great Depression was a time of pain and suffering. People were not worried about “forward-looking” (line 36) fashion or excessive “extravagance.” (line 19) In fact, comparing the Great Depression to today’s society filled with greed could be considered insulting and degrading. Our society had come a long way (whether that be taken in a good or bad sense) since that period of misery. In the 1950’s the pink flamingo had an “outbreak” in the yards, stores, and lives of people from the average Joe to “Elvis Presley” (line 44). Jennifer Price’s theme of a superficial, self-centered society echoes throughout her essay. Beginning with the title “The Plastic Pink Flamingo: A Natural History”, Price draws attention to the contradictory terms “plastic”...
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...how he should handle a meeting that afternoon that would involve his sales manager, his controller and his product engineering manager. The meeting concerned the introduction by a Belgian competitor, Bruggeman Grinders of plastic rings to take the place of steel rings which were a standard component in many grinding machines, including many of the machines made and sold by GDM. The new plastic rings, which had only been introduced in April, not only appeared to have a much longer life than the steel rings, but also apparently were much less expensive to manufacture. Mr. Kurtz’s problem in responding to the new ring was complicated by the fact that he had 25,000 steel rings in inventory and 26 tons of special alloy steel purchased recently for the sole purpose of making more rings. He knew that his raw steel could not even be sold as scrap because of the special allows in it. He had been required to buy a full year’s supply in order to convince a steel mill to make the special product. Overall, he was holding about $93,000 worth of inventory related to steel rings. Case Analysis Issue of the case Facing the introduction of plastics rings by one competitor, Bruggeman, Reichard Maschinen, GmbH (RMG) needs to decide 1) whether they will start to produce plastic rings and 2) when to start the production, if needed. Incremental cost analysis For the short run, RM has the following three alternatives. We will propose to limit the time span...
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...those activities are known as the four P’s: Product: type of goods to be produced and the quantities. Price: cost of the product to be sold to the consumer. Place: geographic area where the product is to be placed. Promotion: includes the advertising of the product, tactics and strategies to make the product known. Marketing Mix There are many possible was to satisfy the needs of target customers. Various advertising media, newspaper, magazines, cable, the Internet may be used. However, with so many variables there are ways to help organize all these decisions and simplify the selection in the market. Marketing mix are the controllable tools that an organization have to produce the response it wants in the target market, usually consist of four elements known as the 4 P’s which are the product, place, price and promotion. Companies use the four P’s to influence the demand for its products, lets consider Berry Plastics, Inc a worldwide leader of injection-molding plastic packaging, thermoformed products, flexible films and tape and coatings. (Berry Plastics, 2008). To describe each of the four elements of the marketing mix: Product, price, place, and promotion. Product The Product means the goods-and-services combination the company offers to the target market. This offering may involve a physical good, a service, or a blend of both. (Perreault-McCarthy, 2004). Berry Plastics offers a wide range of products to different markets and customers, their products range from dairy...
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...how to price or what sustainable competitive advantage it needs to adopt during the next strategic period, given that it holds a large inventory of its now inferior product. This issue concerns the steel and plastic rings which the company, Precision Worldwide, Inc. (PWI) is opting to produce as a matter of competing intensively with a French company, Henri Poulenc, which was at the same time posing a big threat to the viability of the steel rings PWI is producing. . PWI is confronted not only with a substitute product which is both cheap and durable. Compared to PWI’s steel rings, the plastic rings being produced by Henri Poulenc is both cheaper and lasts longer. PWI is also facing the risk of earning the ire of its customers if it manufactures but selectively introduces the cheaper plastic rings in areas where it is faced with the ‘plastic’ competition. As a result, PWI is now confronted with a dilemma of differences in strategic measures to undertake given the differing opinions of its key people. Questions Posted for this Note: 1. You have to analyze the existing data, the conflicting views of the sales manager and the Development engineer. And make a decision as to whether PWI should begin the manufacture of a plastic ring. Answer: From the standpoint of the qualitative aspect of competition, PWI is encouraged to start manufacturing of the plastic ring if it is to avert a more serious consequence of being eased out of the market due to a cheaper, more durable plastic ring...
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...how to price or what sustainable competitive advantage it needs to adopt during the next strategic period, given that it holds a large inventory of its now inferior product. This issue concerns the steel and plastic rings which the company, Precision Worldwide, Inc. (PWI) is opting to produce as a matter of competing intensively with a French company, Henri Poulenc, which was at the same time posing a big threat to the viability of the steel rings PWI is producing. . PWI is confronted not only with a substitute product which is both cheap and durable. Compared to PWI’s steel rings, the plastic rings being produced by Henri Poulenc is both cheaper and lasts longer. PWI is also facing the risk of earning the ire of its customers if it manufactures but selectively introduces the cheaper plastic rings in areas where it is faced with the ‘plastic’ competition. As a result, PWI is now confronted with a dilemma of differences in strategic measures to undertake given the differing opinions of its key people. Questions Posted for this Note: 1. You have to analyze the existing data, the conflicting views of the sales manager and the Development engineer. And make a decision as to whether PWI should begin the manufacture of a plastic ring. Answer: From the standpoint of the qualitative aspect of competition, PWI is encouraged to start manufacturing of the plastic ring if it is to avert a more serious consequence of being eased out of the market due to a cheaper, more durable plastic ring...
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...InterMarket Technology, Inc., a fully integrated point-of-purchase display manufacturer for the beverage industry, was trying to overcome an operations bottleneck in its plastics division. For the past decade, the division had been converting plastic sheeting into sturdy, threedimensional outdoor beverage-merchandising units. These units not only protected and secured beverage products in the out-of-doors, but functioned as powerful advertising and sales vehicles for some of the world’s largest, most international beverage brands. The outdoor units were typically used at gasoline stations which sold soft drinks, in addition to fuel and other products. Each unit could hold up to 24-can cases. The product line consisted of 10 base units, offering clients various merchandising “pack-out” and size options. To customize the products for advertising purposes, client logo artwork was printed on plastic sheets prior to structural manufacturing. To print the sheets, the plastics division contracted with InterMarket’s wholly owned printing division. The plastics division did its own fabrication in a modern 15,600 square foot facility located near a residential area. The printing division operated as a shared services group and provided print services for all three manufacturing divisions of the company (plastics, metal and wood). Intracompany print jobs were priced on an “at cost” basis + a nominal administration fee, or cost + 4%. To function as a profit center for the company...
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...producing the plastic rings. It is important for PWI to evolve with the industry, and refusing to transition to the new product could have a devastating impact on their future sales. Although PWI has a strong presence in the market, it’s stated in the case study that the plastic rings have at least four times the wearing properties of the steel rings. Therefore, while the steel ring currently lasts for an estimated two months, the plastic ring will last for an estimated eight months. Buying a plastic ring would guarantee a customer a better quality product and essentially a better bang for their buck. Also, the total costs to produce the plastic ring would be significantly less allowing the company to take advantage of a huge profit margin. Instead of trying to justify the stock on hand and how much he paid for the stock, he should avoid the sunk cost fallacy. There is not enough information in the study to compare production costs, but with the information available it seems that the plastic rings would be more profitable for the company. As for the stock that is already on hand, there is opportunity to sell them to locations where the plastic ones are not yet available, or sell them for a discounted price after projected sales are met. With a two month life expectancy on the steel ring, combined with the discounted price, PWI may be able to entice customers, even competitors to purchase a large portion of the existing inventory while awaiting the arrival of the plastic ring. If...
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...Group 2 Kimberly Albino Candace Hampton Frances Kately Husein Khan Daniyell Payne Hayley Romine July 19, 2015 Table of Contents Abstract 3 Key Issues and Problems 4 Decision Alternatives… Resolutions and Solutions… Recommendations… References… Abstract The purpose of this case study is to examine, classify; analyze critical concerns as well as difficulties that are impacting Precision Worldwide, Inc.’s organization. Notably, Precision Worldwide, Inc. has several competitors who are well-disposed in the market due to their reduced pricing and product substitutions. The method in which this case study observation is arranged will explore findings and opportunities related to price and production cost; the ramifications of demand in other markets. The assessment of this case study, in conjunction with arriving to an appropriate cost for materials and freight, will help determine the recommended best course of action for Precision Worldwide, Inc. and Hans Thorborg in deciding the preferred product for the organization. Key Issues and Problems Precision Worldwide, Inc. (PWI) is faced with a business decision that will potentially affect the organization’s continuity and profitability. The organization recently held meetings to discuss the introduction of a substitute product into the marketplace by a competitor. In making a business decision to ensure the ongoing future of the organization, the key issues and problems...
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...and parts for sale in numerous countries, is facing a serious problem which is Henri Poulenc (a competitor) of a plastic ring substitute for the steel retaining rings presently used in certain machines sold by Precision Worldwide. The steel ring has an average normal life of about 2 months, but the plastic ring has an average normal life of about 8 months. Therefore, in my opinion, Hans Thorborg who is the general manager of the company should take several actions in response to this problem. The first action should do is being able to produce the plastic ring as well. Because the total cost of 100 steel rings is $1107.90. This cost is about 3 times of the cost of 100 plastic rings. Also, the plastic ring is also cheaper and durable than steel ring. Although the PWI would still have a lot of inventories for materials of plastic ring and completed plastic rings, PWI should demonstrate a positive attitude for resolving in terms of the qualitative factor of competition. In the other words, the cost of the existing inventory would replace by the opportunity cost for entering the current market. Furthermore, at the current rate of sale (690 rings per week), without any further production, 15,100 finished rings would be left on hand by mid-September. Therefore, PWI should continue producing and selling steel rings till mid-September. In the mid-September introduce plastic rings at least in those markets where Henri Poulenc is present and to consider the idea of selling the steel rings...
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...Repair and replacement parts, which accounted for a substantial part of the company’s business is now facing a dilemma, a new competitor has entered the market with a replacement part, a plastic ring, which PWI had in the past used a special steel to produce. During a meeting with the general manager, Hans Thorborg, the general manager of PWI’s plant in Germany, wanted to discuss with his sales manager, accountant and development engineer the introduction of the competitor, a French firm Henri Poulenc and the plastic ring substitute they produce (Bruns, 2004). The plastic ring produced by Henri Poulenc is created at a fraction of the cost of the steel rings that PWI currently produces, and was found to last four times longer than the steal ring (Bruns, 2004). Many strategies were discussed by PWI’s management team on how to respond to this new competitor along with discussions regarding what to do with the special steel the company has on hand. Analysis The main topic of discussion and concern is the company losing on profits if they do not begin manufacturing their own plastic ring. Which leads to the next questions how to market and price a new line of plastic rings and the big question what to do about the special steel they use to produce steel rings. If PWI sells on a new line of plastic rings the inventory of manufactured steel rings and the inventory of steel on hand would be sunk cost since the steel cannot be sold for even scrap and the cost was incurred in the past...
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...SWOT Analysis of Regal Plastics By: Chris Pisculli Principle of Management PART ONE – Due Week One I. Organization Background A. Regal Plastics been open for over 50 years and is a family owned business that is now wanting to take their business to the next level. They have been in a direction of sustain their current financial obligations but now under new management by their son. It is taking a new direction. The Plastics industry has been increasing over the past few years and replacing glass and is used to replace some metal parts for machines. Regal Plastics has also been implementing new management strategies to make the next 50 years more profitable than ever. B. Strategic Leadership is the ability to anticipate, envision, maintain flexibility, think strategically, and work with others in the organization to initiate changes that will create a viable and valuable future for the organization. This company is allowing each branch to implement any new ideas that they feel that will create value and profitable outcomes. They have also implanted new core values for each branch to follow. These core values will help direct each branch into a better direction. Allowing them to improve with creativity and optimism for new success. C. Regal Plastics is a family owned company committed to building a superior plastics distribution network in the Southwest. Our business is based on integrity and character and will be built through relationships and extraordinary...
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...Division What: Has to decide if/when to convert to plastic rings from steel rings Why: They cost less to produce and last longer When: Decision needs to be made quickly LONG CYCLE PROCESS Issues Immediate | Basic | -excess steel ring inventory | -will be more demand for plastic rings than steel | -competitor already selling plastic rings in one area | -need to adapt products to benefit consumer | -cost to produce rings | -steel rings have lower contr. margin | Qualitative Analysis -focusing on selling the plastic rings will be critical to the success of the company because of the increased quality -although there is a company selling plastic rings in one market in Europe, Reichard can gain a first mover advantage of many of the other markets across Europe and North America by introducing the plastic ring before other competitors -the introduction of a plastic ring will likely cannibalize sales of their steel rings. They can offset this by putting value on the steel rings to consumers by selling them at a much cheaper rate until they sell out of the steel rings. The discounted rate of steel rings will definitely entice some buyers because of the lower price. Quantitative Analysis (per 100 rings) | Plastic | Steel | Selling Price | 340 | 325 | Material | 4.2 | 76.65 | Direct Labor | 15.6 | 46.8 | Variable Overhead | 37.44 | 112.32 | Contribution Margin | 282.76 | 89.23 | -plastic rings contribution margin is greater by $193.53...
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...“Multi-functional plastic folder” TABLE OF CONTENTS 1.0 INTRODUCTION…………………………………………………………................................3 2.0 THE COMPANY.…………………………………………………………………………………….4 3.1 Concept 3.2 Products 3.0 CURRENT SITUATION......…………………………………………………………………......4 3.1 Competition 3.2 Market Trend 3.3 Opportunity and Issue Analysis 3.31 Strengths 3.32 Weaknesses 3.33 Opportunities 3.34 Threats 3.35 Other Issues 4.0 FINANCIAL AND MARKETING OBJECTIVES……………………………………………7 4.3 Financial Objective 4.2 Marketing Objectives 5.0 MARKETING STRATEGY………………………………………………………………………..7 5.1Target Markets 5.2 Segmentation 5.3 Positioning 5.4 Promotion 5.5 Pricing 5.6 place 5.7 products 6.0 COMMUNCATION....……………………………………………………………………………..9 7.0 MARKET RESERCH……………………………………………………………………………….9 8.0 ACTION PROGRAMS…………………………………………………………………………….10 8.1 project plan 8.2 budget plan 9.0 CONCLUSION ……………………………………………………………………………………….11 10 REFERANCES..................................................................................................................12 1.0 INTRODUCTION The Multi-functional plastic folder made out of from a malleable plastic called Fluor polymer...
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...satirical and astute essay “ The Plastic Pink Flamingo: A Natural History,” Jennifer Price illustrates how superficial American culture is and uses the history of the flamingo to make her claim . Price proves that the United States culture in the 1950s sensualized luxury through extravagance. Yet, her mocking tone conveys that she is criticizing U.S. culture. She conveys this through unique word choice in a comical and sarcastic way to create the comparison between the flamingo’s and the flashy American culture. In her essay Price comments on the irony of the flamboyant symbolism of the flamingo stating that “Americans had hunted flamingos to extinction...for plumes and meat.” Not only had they hunted them but had driven them to extinction....
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...unfavorable to the plastics industry. Although Fraser River Plastics has 40% of the market in western Canada, two direct competitors has 30% of the market and the company’s sales are sluggish due to smaller local plastic manufacturing plants with smaller overhead. Also, other acquisitions like Beaver were in trouble due to a saturated and extremely competitive market for extruded pipe. Firm Position: The general environment is unfavorable to FRP because of the crosscurrents of opinion that were developing regarding the company’s future. Porter’s 5 Forces Model Bargaining Power of Suppliers Industry: The bargaining power of suppliers is moderate for FRP given that the Canadian resin prices are becoming more competitive with U.S. and other international prices which exceed world prices by 10%. The bargaining power of suppliers is low because the plastics industry’s profits are driven by the economy, crude oil supplies, and costs. Firm Position: The bargaining power of the firm is low because the plastics industry’s profits are driven by the economy, crude oil supplies, and costs. Bargaining Power of Customers Industry: Bargaining Power of Customers is high due to the amount of competitors in the plastic industry. With over 1,400 firms in Canada, customers are able to bargain for the better deal. Firm Position: Early on the company’s bargaining power to customers were high due to high demand and the customer’s acceptance of prices. Now it is low due...
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