Carded Graphics, LLC Case Study Solution
Introduction
Carded Graphics, LLC manufacturing can be considered as a digital marketing firm. It wasbuilt in the year 2006, with its main aim directed towards working in the industry of containers and packaging of customize product in a small mess, by offering the different designed according to the customers’ desired digital prints, required finalized cartons and paper work. This is not a large mess of production, buthighly classified orders. It is an uncomplicated business and to reaching to its niche market segment is not a difficult task for the company.
The carded Graphics LLC manufacturing company runs its business in the United States. The company’s CEO as well as its president is Murry Pitts, a person with outstanding leadership in the field of this industry.(Lipson, 2009).
Problem Statement
The case is identifying the challenge for the company to estimate the cashflow forecast, discounted rate, net present value, depreciation of the machine, variable charges, operation expenses, quality and quantities factors, capital investment and production capacity of the equipmentto be considered while making a decision regarding the replacement of a new machine with an older one.
Key Success Factors
Some of suggested key factors for the company are:
- The first most important key factor for the company is to provide the desired customized item to its customers.
- Further is to provide quality work in a minimum reasonable price.
- Give easy facilities to connect.
- Accept orders and fulfil them on time.
- Use common sources of advertisement for promotion and introduction among all classes of people.
- By giving the assurance of quality work.
- Use the best raw material, such as: cards, paper, ink, glue etc. in all products.
- Provide a large quantity of designs to the customers.
- Use advanced technology to make it more attractive.
Positioning of the Company
The positioning of the company to work on a small scale and to make a niche of market according to its customers’requirement and willingness for items by utilizing the minimum cost of production and providing quality work with reasonable prices. And make a right decision regarding the installation or replacement of new machinery with older one, throughconsidering all pros and cons of the decision on behalf of numerical data and analysis of other factors.
Non-QuantifiableBenefits
The non-quantifiable benefits to replace a new sheeteris to improve the quantity of work and make good will in the market, and become competent insuch acompetitive market environment.
Strategic Benefits
Strategic benefits to replace a new sheeter could be an increase in the capacity so it could be minimizing the variable costand could generate more profit. Utilization of wastage and provision of more updated work.
Value Drivers of the Replacement Decision
The replacement of the sheeter is considered because of the intension of carded graphic, in order to increase the value of work, reduce the variable cost and waste costs associated with old machine to upgrade the carded machine, whichwill solve the future saving that the carder graphicstend tobring through minimizing the variable cost, which is the sign of high capacity in lower budget. New technology might utilize less electricity and reduce the labor expenses, which wouldhelp in reducing the depreciation charges because new replacement does not need earlier maintenance expenses. Increased product and offering servicesmake strong financial position of the firm.
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