PYREX Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

ANSWER TO QUESTION # 1

Discussed below are the order winners and qualifiers associated with World’s kitchen’s Pyrex product line/brand

ORDER WINNERS:

Following character sticks are considered to be order winners for the World’s Kitchen’s Pyrex product line brand.

The product of the company should be of exceptional quality as well as the product should be offered at a comparative low price as this would attract the customers of the company more towards the product. The product of the company should be durable and the top management of the company should also make certain arrangements in order to ensure that the products are delivered on time.

The product of the company should be flexible enough to be used for multiple purposes easily and effectively, and this would also attract the customers of the company as it would increase their comfort level.

Furthermore, intellectual property controlling aspect would also be considered by the customers of the company, as it also adds value to the product of the company. In addition to this, kitchen items manufactured by the company should be non-stick items, as this would help the customers of the company to cook easily and comfortably.

Thus, the top management of the company should make its back breaking efforts in order to ensure the a fore mentioned character sticks in their products as this will allow the company to enhance its customer base by attracting the customers towards the company.

ORDER QUALIFIRES:

Following characteristics are considered to be order winners for the World’s Kitchen’s Pyrex product line brand.

The product of the company is of low quality as well as the products of the company are offered at a comparatively high price. The products of the company have the maximum lead time as compared to the lead time of its competitors as well as the products offered by the company are less durable than its competitors.

Furthermore, if the product offered by the company is not flexible enough that it could be used for a number of multiple purposes, than it would decrease the ability of the product to attract customers towards the product of the company. Moreover, if the products offered by the company are less durable than its competitors, then it might fail to attract the customers towards the product.

COST DRIVERS

The main cost drivers of the company include furnace hours, labour hours as well as production units. These are considered to be the main cost drivers because these constitute almost 90% of the production activities. The overhead costs are distributed using the related cost drivers in order to allocate costs on the separate basis.

ANSWER TO QUESTION # 2

In the exhibit, the calculations has been done in order to analyse the effect on price per pound if the suppliers from A to G operate at their full capacity as well as if the plant also operates at its full capacity.

The calculation shows that the price per pound would decrease if the plant and suppliers operates at their full capacity. The price would decrease because the cost of the product constitutes a greater percentage of fixed costs as compared to variable costs, therefore, when the number of units increases due to utilization of full capacity, the fixed costs per unit would be subsequently decreased as it would be spread over more number of units.

ANSWER TO QUESTION # 3

FACTORS THAT SHOULD BE CONSIDERED WHTHER TO MANUFACTURE OR BUY

Following are the factors that should be considered in order to decide whether to manufacture the product or to buy it from overseas suppliers.

QUALITY OF THE PRODUCT

The quality of the product should be considered while deciding whether to manufacture the product or to buy it from overseas. The top management of the company should not compromise on quality of the product and should always go for the option where the quality of the product could be maximized.

PYREX Case Solution

TRANSPORTATION PROBLEMS

The transportation problems should also be considered while deciding either of the options. The top management of the company should choose the option where there are no or few transportation problems. Furthermore, the top management of the company should also consider freight charges and freight inconsistencies and contingencies.

ECONOMIES OF SCALE

The top management of the company should also evaluate both options with respect to earning of economies of scale. The top management of the company should choose the option, which allows the company to earn economies of scale easily and effectively............................

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