Fantastic Manufacturing Inc. Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

Fantastic Manufacturing Inc.Case Solution

How to compete with the rivals

The fantastic manufacturing should decrease the prices and increase the quality
the organization should have the marketing and advertisement strategies
they should start the market penetration concept

C. Alternatives Information

The alternatives can be assessed and evaluated by the proper marketing research and forecasting of demand. The most important thing is they must know their competitors and their marketing strategies then they can perform the better operations from them. The other is the firm should know the best areas for the warehouses which would be accessible for the supplier and the logistic operations could easily be done from there. Other than that they must know the proper way of having economies of sales concept so the bulk amount of production can decrease the production cost.

D. Risk and Return of Options

Risk and return for problem 1:

Risk Return

Increasing price can make the firms’ decrease in sales	The return would be high if the prices become high
Production in same country can be effected by the taxes and government laws.	the production in the same country can decrease the overseas cost

Risk and return for problem 2:

Risk Return

Keeping the goods in warehouse can increase the holding inventory cost	the company can fulfill the demand and have the inventory in backup
There is change of damage of goods in warehouse	There lead time will be decreased

Risk and return for problem 3:

Risk

Increasing price can make the firm lose its competitive advantage	market penetration can make the company to increase the customers
Marketing and advertisement can incur the extra cost	Marketing and advertisement will make the customers brand positioning

E. Action Plan

The company should execute the following decision plan;

The company first assess the demand
Then they should start the production with economies of scale
They should decrease the price by economies of scale and increase the quality
The excess production must be done and stored in warehouses
They must have multiple suppliers to decrease the lead time
There must be inventory in backup to overcome the uncertain situation

3. Case Specific Directions

The financial health of the firm is quite favorable. As it is dealing in basic goods of ceiling fans which is high revenuer generating business and people are more likely buy the goods. The growth of the industry has been continuously increasing from past 3 years(See appendecis).

Moreover, the company is achieving the com petitive advantage among itsa competitors by having the cost effective strategy. They have the better quality goods with reasonable. There is a need of increasing finnace for making the production more expanded and to fulfil the customers’ demand by having adequate inventory in backup. The WACC 18.156279069767400% of the firm. The financial condition of the firm is shows the growth of the firm .See appendices

4. Problem Categories

Investing assets to increase the sales by replacing old products is a favorable decision because the assets is a revenue generating part and as your business has profitable and more assets , your business will rapidly grow; for instance; if the firm has new machineries and equipment so they can have more efficient production which will be effective.
Funds securing is a quite favorable decision because it will increase the capital but there will be more liability incur on it as the profit share will also be distributed. Like the profit will be distributed among the partners and the dividends should be paid to the shareholders.

5. How to Raise Funds?

Increasing the liability of the firm is not favorable decision because this can make the revenue decrease and the company will be having liability over it. The best strategy to raise funds is the common stock because the equity of the firm will be increased by the shareholders and the trust will be more towards the company. They can have the market value high by issuing the common stocks to the public.

The other relevant source is to make partnerships with the other companies or have alliance with them so they can increase their funds and high revenue could be earned by it.........................

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Fantastic Manufacturing Inc. Harvard Case Solution & Analysis