Sport Obermeyer Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

Sport Obermeyer Case Study Analysis

A comparison of two initial production commitments has been performed in the above table, in order to analyze the production difference. It could be seen that a total of 1200 units would be produced in excess in the Chinese plant as comparedto the Hong Kong plant. These 1200 units are those units which are produced due to excessive minimum production capacity of the Chinese plant. Thus, it is concluded that the Chinese plant can manufacture a greater number of units at low cost as compared to the Hong Kong plant.

Question No: 4

Operational Changes for Performance Improvement

One of the major operational problem faced by the organization is to predict an accurate forecast in order to fulfil the product’s demand. Number of difficulties include: inaccurate retailer demand forecast, intense competition and product’s variety. These problems yielded two main problems- out of stock of most popular products and excess stock of unpurchased products, which were later sold at highly discounted price. The Excess stock was sold at very low prices and caused significant loss incurrence. Another major problem was the increase in the lead time for production as well as distribution.

After analyzing the entire case with the help of stated facts and figures, some major changes for operational activities are recommended in order to boostup the performance and profit maximization level. It is recommended that Sport Obermeyer should concentrate on examining the accurate production unit forecast. Proper R&D department should be made functional in order to provide an extensiveresearch-based work for accurate forecast. Both quantitative and qualitative analysis should be made in order to predict the unit production. In addition to this, the unit production requires a long forecasting duration. Thus, this should be minimized with the help of an accurate weighted average forecastingmethod.

The Chinese production plant needs proper administration and operational functionality. Although, the labor rate is low in China, butit is observed that the labors take more time and training requirements, along with having high repair rate turnover. Thus, it is recommended that labors should be well trained along with maintaining high quality production. Furthermore, excess lead time for distribution and production should be minimized by approaching nearest sales locations.(F Lauretani, CR Russo, S Bandinelli, 2003).

It is recommended that the company should expand its customer base or explore new markets in order to sale its excess production units at high price. This would yield an increased profits. Furthermore, gorilla marketing tools should be used in order to develop an effective promotionalstrategy to attract more customers.

Question No: 5

Sourcing policy In Hong Kong

The Chinese production plant needs proper administration and operational functionality. Although, the labor rate is low in China, but it could be seen that the labors take more time and training requirements, with having high repair rate turnover. On the other hand, the labor at Hong Kong plant are skilled and trained for cross functional activities and require only 10 workers at each Park line as compared to 40 workers at each park line in China. Thus, it is recommended that labors should be well trained along with maintaining high quality production. (F Lauretani, CR Russo, S Bandinelli, 2003). Thus, after evaluating the associated pros and cons of each production plant; following short-term and long-term policies are made for the company.

Short Term Policy

On the short term, Hong Kong could yield an increased production along with yielding low cost because of skilled workers, who require less time. The repair turnover is also low, which yields low additional cost. Thus, it is recommended that the company should pursue unit production at Hong Kong plant, because of its high quality and low cost.

Long Term Policy

On the long-term basis, Chinese plant’s production could be considered because it could produce large batches along with having lower labor rate. For this purpose, the company needs to provide an effective cross functional skill training to the employees, along with maintaining proper quality measures.

Conclusion

Sport Obermeyer is a global company with a strong global supply network. Sport Obermeyer manufactures and designs Skiwear products by targeting men, women, boys, girls and preschoolers,with the provision of different products sizes, colors and styles. It is recommended that higher production batches should be produced in China, in order to minimize the labor cost. In Hong Kong, smaller unit production batches should be manufactured. It is recommended that Sport Obermeyer should concentrate on examining the accurate production unit forecast. Proper R&D department should be made functional in order to provide an extensive research-based work for an accurate forecast................................

This is just a sample partical work. Please place the order on the website to get your own originally done case solution.