...Timbuk2: Outsourcing, Offshoring and Mass Customization Introduction: Timbuk2 was founded in 1989 by Rob Honeycutt, a San Francisco bike messenger. Honeycutt wanted to develop a messenger bag that was rugged enough for everyday wear and tear, but chic enough to set a fashion trend. The company founded its success based on its lean manufacturing and mass customization principles. With many of the American companies now outsourcing their manufacturing processes to China, it became hard for Timbuk2 executives to ignore the labor cost benefits that Chinese manufacturing would provide. Dealing with different channels (wholesale/retailers, e-commerce, etc), Timbuk2 also had to find a way to improve their mass customization processes and determine if it was feasible for them to offer their clients more choices (colors, sizes, patterns, etc). In this case, Timbuk2 has two very distinct problems. The first problem is concerned with Mass Customization of their products. Should the company offer its clients more variety of choices when customizing their very own bags? The second problem is concerned with whether or not Timbuk2 outsource its manufacturing production to China due to it’s significantly low labor costs? Analysis: Mass Customization: Timbuk2 sells its products through different channels, such as the traditional domestic wholesaler and retailers, e-commerce, corporate and international channels. The most profitable channel for the company is the e-commerce channel...
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...The Tao of Timbuk2 1. Consider the two categories of products that Timbuk2 makes and sells. For the custom messenger bag, what are the key competitive dimensions that are driving sales? Are their competitive priorities different for the new laptop bags sourced in China? For the custom messenger bag, the key competitive dimensions that are driving sales are high-quality custom (bags are worn daily for a decade), reasonable price, high differentiated design (customers select the basic bag configuration, size, color, pocket and strap options themselves), convenience in purchasing (customers can buy bags that are tailored to the exact specifications they like by just getting on the website), quick delivery speed (sent by overnight delivery directly to the customer), flexible and very quick new product introduction speed (people design new products online everyday). Since the new laptop bags are made in China, the shipping speed is not as quick as that of the messenger bags made in San Francisco. But other competitive priorities are not so different, especially for the retail price, which is lower comparing to the other laptop bags of the same quality, features and functions. Since these bags are more complex to build and require more labor and a variety of different machines (more expensive) to produce these products, to keep the prices lower for the consumer, outsourcing the manufacturing of these bags is necessary. Putting up factories in China makes labor costs cheaper...
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...What is CVP? CVP or Cost Volume Profit analysis is an extremely interesting subject and one of the most useful for helping managers with short-term planning and decision making. This is because CVP analysis emphasizes the interrelationships of costs, quantity sold and price, it brings together all the financial information of the firm. CVP helps the managers understand the relationship between cost, volume and profit in organization by focusing on interactions among the following five elements: Price of products, volume or level of activity, per Unit variable cost, total fixed cost, mix of product sold. The technique mainly involve require costs to be separated into their fixed and variable elements. Fixed costs are those that stay in the same in total regardlss of the number of units produced or sold. For example, depreciation of the machine, no matter wether the machine is used or not, the depreciation expense will be the same because it is based on the number of years the machine will be in service. Then, variable costs are the costs that change in total each time an additional unit is produced or sold. For example, direct material or direct labor. The cost will increase inline with the product produced. Graphically, the total fixed cost is straight horizontal line while the total variable cost lines slopes upward. CVP graphs rely on some important assumptions as follows: 1. A linear revenue function and a linear cost function. 2. The price, total...
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...Timbuk2 Case Study Page 1 1. COMPANY OVERVIEW Timbuk2 creates, produces, and sells bags. Its products include custom messenger bags, laptop messenger bags, and backpacks, as well as travel bags, totes, duffel bags, camera cases, shoulder bags, laptop sleeves and wallets. The company also offers accessories and clothing. It sells its products through specialty retailers, its own retail store, and online through its website. 2. SWOT ASSESSMENT Strengths At the time Mark Dwight purchased the company, Timbuk2 was a popular bag company that produced a trendy bag at a reasonable price. Timbuk2’s bag was very light but very durable and weather resistant. It had established itself amongst young male and female professionals as a stylish yet practical bag. Timbuk2 had just perfected its production method for creating the custom bags. This system adapted...
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...Where in the World Is Timbuk2? Outsourcing, Offshoring, and Mass Customization1 Brennan Mulligan paused to admire the San Francisco skyline before entering the leased building that housed all of Timbuk2’s activities, from management to manufacturing (Figure 1). Who would imagine that anyone could profitably manufacture a textile product in San Francisco in 2002? With competition not only from lower-cost centers in the United States but also from China and other places in the Far East, a converted warehouse building in San Francisco was an unlikely location for this manufacturing business. Yet Brennan was not sure Timbuk2 could continue indefinitely to produce everything in San Francisco. While the pride and satisfaction of producing in San Francisco was ingrained in Timbuk2’s culture, and moving production elsewhere would be a huge change for a small company with local roots, Timbuk2 needed to remain profitable. Hence, Brennan knew there was no easy answer to the question on the table: Should Timbuk2 outsource some (or all) of its production to a Chinese firm? Figure 1: Timbuk2’s neighborhood in San Francisco This case was written by Professors Gérard Cachon (The Wharton School, University of Pennsylvania), Kyle Cattani (Kelley School of Business, Indiana University), and Serguei Netessine (The Wharton School, University of Pennsylvania) as the basis for class discussion rather than to illustrate effective or ineffective handling of an administrative situation. Some numbers...
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...A CASE STUDY OF WWW.TIMBUK2.COM A Case Study of www.timbuk2.com A Case Study of www.timbuk2.com Timbuk2 is a San Francisco-based company that specializes in manufacturing ready-made and custom-made messenger bags. A messenger bag is also called a courier bag. It is a type of sack, usually made out of some kind of cloth worn over one shoulder and often used by bicycle messengers. To its owner, a Timbuk2 bag is a dependable, everyday companion. Many Timbuk2 bags are worn daily for a decade, or more. It is common for a Timbuk2 bag to outlive jobs. Timbuk2 messenger bags commonly incorporate certain technical features that make them suitable for cycling such as specialized fittings for loosening and tightening the main strap, reflective materials, compression and stabilization straps, and waterproof lining. Timbuk2 is popular among bicycle messengers and cycling enthusiasts. Over the years, Timbuk2 messenger bag has outgrown its working-class roots. It is now increasingly adopted by a growing number of urban, students, and young professionals as a stylish alternative to the ever-present two-strap day pack and the formal black briefcase. Timbuk2 remains faithful as ever to its working-class urban roots, while expanding its city-bred sensibilities to a broader range of products and a wider audience. All its new products share a sense of style, toughness, attention to detail and dedication to quality. Messenger bags are often used as a fashion accessory. Timbuk2 messenger...
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...Project Management Case Studies: IKEA and Timbuk2 Table of Contents Case I: IKEA Design and Pricing 3 Case Summary: 3 Key Terms: 3 Case Questions 5 Conclusions 9 Case II: The Tao of Timbuk2 9 Case Summary: 9 Key Terms: 10 Questions: 11 Conclusions: 15 Bibliography 16 Case I: IKEA Design and Pricing Case Summary: IKEA is a Swedish retailer that dominates the home market in 32 countries and is currently expanding in the United States. The success of the company is providing low cost products that include function, modern design, environmental considerations and healthy manufacturing conditions. IKEA designs its products, manufacturing, and distribution systems with the target price in mind. IKEA’s processes and corporate mantras feel unique and cheerful. Both customers and employees count on the company to operate responsibly. IKEA makes customers feel like they are living well even though they aren’t paying for premium product. There is a great deal to learn from its operations and management. The company’s goals have been incorporated into the product design process that IKEA uses. Key Terms: • Triple bottom line – A business strategy that includes social, economic and environmental criteria. IKEA is an example of a company that judges itself by the triple bottom line. While it strives to do good business, it includes a business and operating model designed to minimize the impacts on the environment. The company markets its philosophy...
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...Project Management Case Studies: Ikea And Timbuk2 Project Management Case Studies: IKEA and Timbuk2 Table of Contents Case I: IKEA Design and Pricing 3 Case Summary: 3 Key Terms: 3 Case Questions 5 Conclusions 9 Case II: The Tao of Timbuk2 9 Case Summary: 9 Key Terms: 10 Questions: 11 Conclusions: 15 Bibliography 16 Case I: IKEA Design and Pricing Case Summary: IKEA is a Swedish retailer that dominates the home market in 32 countries and is currently expanding in the United States. The success of the company is providing low cost products that include function, modern design, environmental considerations and healthy manufacturing conditions. IKEA designs its products, manufacturing, and distribution systems with the target price in mind. IKEA’s processes and corporate mantras feel unique and cheerful. Both customers and employees count on the company to operate responsibly. IKEA makes customers feel like they are living well even though they aren’t paying for premium product. There is a great deal to learn from its operations and management. The company’s goals have been incorporated into the product design process that IKEA uses. Key Terms: • Triple bottom line – A business strategy that includes social, economic and environmental criteria. IKEA is an example of a company that judges itself by the triple bottom line. While it strives to do good business, it includes a business and operating model designed to minimize the...
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...Join now! Login Support Other Term Papers and Free Essays Browse Papers Business / Timbuk2 Case Study Timbuk2 Case Study Term Papers Timbuk2 Case Study and over other 20 000+ free term papers, essays and research papers examples are available on the website! Autor: santhanam.vikram 09 December 2013 Tags: Words: 723 | Pages: 3 Views: 86 Read Full Essay Join Now! CASE STUDY: TIMBUK2 1.) Consider the two categories of products that Timbuk2 makes and sells. For the custom messenger bag, what are the key competitive dimensions that are driving sales? Are their competitive priorities different for the new laptop bags sourced in China? Some of the competitive advantage which are the key factors of Timbuk2 bags are:- Quality Durable Reliable Not prone to defects Custom made bags for each of the customers The quick delivery of bags The rave review which the company gets for its bags i.e. it basically carries a good name in the market For its laptop bags, even though they are manufactured in china, the designing is done in San Francisco. so the exclusivity remains Cost effective manufacture of laptop bags in china Being able to adopt to changes in demand and fashion By manufacturing the bags in china the company saved the manufacturing cost but lost their niche of manufacturing and selling in America itself. The general perception of it being a Chinese product led to customers felling little...
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...With these developments, it is obvious that conflicts between parties of different nationalities occur and liability to tax on income of foreigners especially among those engaging in trading venture. Whilst the laws affecting domicile and residence may be sufficiently settled, it is paramount for courts to pursue a detailed analysis to ascertain specific preliminary issues so as to avoid controversial rulings. Courts often handle numerous financial cases that involve what can be best described as foreign or international elements. In such cases, court must decide whether it has the jurisdiction under the Family Law Act 1975 to make a decision on such cases. In the event that it is determined that the court is invested with the jurisdiction to determine the case, the court has to consider whether there is a system of law in foreign country that also has the jurisdiction to handle the case. As it was addressed in the case Attorney General of New Zealand v Ortiz [1984] AC 1, these benefits and costs to either party if the case resolution is made in foreign country as compared with the apparent country should also be a subject of concern. [1] Legal systems in most countries around the world adopt community property regime, which takes effect at the inception of marriage or at the time of divorce. For instance, California and Massachusetts in the United States have adopted community property regimes that support equal division of assets upon divorce. However, this provision...
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...Adapted from Bernhardt & Kinnear (1988). Cases in marketing management, pp. 6-16. Plano, TX: Business Publications, Inc. Pay careful attention to the following points. They are often used by instructors to evaluate either a written or oral analysis. 1. Be complete. Each area of the situation analysis must be discussed, problems and opportunities identified, alternative presented and evaluated using the situation analysis and relevant financial analysis, and a decision must be made. An analysis that omits part of the situation analysis or only recognizes one alternative is not a good analysis. Second, each area must be covered in-depth and within insight. 2. Avoid rehashing case facts. Every case has a lot of factual information. A good analysis uses facts that are relevant to the situation at hand to make summary points of analysis. A poor analysis just restates or rehashes theses facts without making relevant summary comments. 3. Make reasonable assumptions. Every case is incomplete in terms of some piece of information that you would like to have. A good case analysis must make realistic assumptions to fill in the gaps of information in the case. For example, the case may not describe the purchase decision process for the product of interest. A poor analysis would either omit mentioning this or just state that no information is available. A good analysis would attempt to present this purchase decision process by classifying the product and drawing upon real life...
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...are given. It is understandable then that we should seek out more opportunities to apply our skills and make more positive impacts within our jurisdictions. It is this general attitude that led us to get involved in investigating cold cases. How We Got Started Mark had, for several years, been consulting with our Coroner’s Division as a forensic anthropologist. During this time he came to learn that there were numerous coroners’ cases in which the identity of the decedent was unknown. These cases were kept in three-ring binders on a shelf in the Sergeant’s office. Over the years, in the course of this forensic work, we would discuss these cases and the progress that was being made on them. The conversation usually ran along the lines of us asking “any luck with that 1980 homicide victim?” and the sergeant answering “well, we’ve gotten so many new cases that I haven’t been able to even look at it yet.” This went on for a few years and through two different sergeants. One day we, as a crime analysis unit, were brainstorming about how we could broaden our “client base”, as it were. We had been successful in integrating ourselves into our Investigations Bureau and had been involved in numerous major cases. And, of course, we had always been active in producing tactical and strategic analyses for our patrol personnel. But we knew that we could be doing more, particularly given the size and responsibilities of our agency. It was during...
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...BUSINESS CASE Presented to the Accountancy Department De La Salle University In partial fulfillment Of the course requirements In ACCTBA2 (C33) March 2, 2015 A stakeholder is typically concerned with an organization delivering intended results and meeting its financial objectives. In general, a stakeholder can be one of two types: internal (from within an organization) or external (outside of an organization). The stakeholders in this situation are Lanie Marquez and Tim Rodriguez who are also partners in the retail distribution business and their capital contributions are as follows P500,000 and P300,000 respectively they are an internal stakeholder since they are also the owners. The total Capital of both stakeholders is P800,000 and with a monthly salary for both partners at P15,000 on the assumption that both of them will contribute to manage the business equally. Assuming that both managed the business equally the total salary for the year for Lanie and Tim are P180,000 each. They share profit and loss equally and no interest will be given on capital contributed. The problem for this situation is that Lanie is starting to get concerned with the behavior of her other partner Tim. He only manages the business 50% of the time, which will mean that his salary of P15,000 will need to decrease by also 50% since he does not manage the business equally with his partner. The business has seen a downturn in the profit outcome and for the current financial...
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...Ralph’s Grocery and United Food and Commercial Workers Union The case that I chose for the week 6 critical thinking assignment concerns Ralph’s Grocery Company, located in California. It applies to this week’s material due to the fact that the case involves unlawful suspension and discharge of an employee, as reviewed by the National Labor Relations Board. Background In May 2011, Vittorio Razi was an employee at Ralph’s Grocery and was suspended and terminated after he refused to take a drug test without first consulting with his UFCW Local 324 representative. The company (Respondent) says that on the day in question, Razi’s behavior was in question, acting nervous, anxious, agitated, and slurred speech. After a couple managers discussed the...
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... Many people wonder why their own teeth stain so easily. The enamel on your teeth and chromogens are what stains your teeth, but what exact beverage stains teeth the most? I chose this topic because I was curious to know what stains teeth the most. It affects us daily because it could rot your teeth or you can’t pick up hot chicks anymore. So what causes teeth to stain? The temperature causes teeth to expand or contract making it easier for stains. So hot and cold drinks affect that. Color in foods and beverages come from chromogens. Chromogens are intensely pigmented compounds that stick to teeth enamel. Chromogens cause a lot of trouble when they mix and react with other stain causing and stain promoting factors. Tannis may be natural or synthetic tannis is another factor that stains teeth. Tooth enamel is porous making it extremely susceptible to stains. The darker the liquid the darker the stain. There are some examples that stain teeth. Not only sodas bad but also Gatorade. Beets are bad for you also. Mostly cause they’re concentrated. Berries dark skins stain teeth. Ketchup is also really bad because of its bright red color and high levels of acid. Dark liquids and sauces you put on your foods also stain teeth. Colored candy and popsicles both contain colorants that will transfer to the teeth and embed in the porous enamel. Fruit juices, especially grape and cranberry, leave a colorful tinge on the teeth and tongue. Colored sodas instantly discolor teeth. The citric acids...
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