Yang Toy-land, PTE Limited Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

Yang Toy-land, PTE Limited Case Solution

The difference in the regulatory standard would make it challenging for the company to sign the contract with Gross-Veranda.
It would require the company to invest a considerable amount of money to fulfill the order placed by Gross-Veranda,i.e.four wheel drive jeep CXL & Porsche 911.
The prices of the two models, including:four wheel drive jeep CXL & Porsche 911 proposed by Gross-Veranda was 25 percent below those quoted for similar models in the broaches of Y. C. Yang Toy land; hence, the expected return on the investment seems to be mediocre.
The tough terms of the agreement could restrict the company’s ability of generating high profit returns, such as: damages’ payment for non-delivery of products along with accrued incidental cost, right of order cancellation, strict extension of time granted by Gross-Veranda, right of seller instead of returning the defective item, Gross-Veranda could claim a discount on the purchase price.
The company would have to bear the cost of hiring new staff to handle the workload.
The company would not be able to further accept orders from other customers, before dispatching the products to Gross-Veranda.
The orders of above 50 percent level would result in capacity issues, because the company would not be able to take further orders from other customers and schedule them in the similar year of fulfilling the order of Gross-Veranda, thus putting pressure over the company regarding the improvement of production capabilities.
Another drawback of singing the contract with Gross-Veranda, is an increased cost of equipment and machinery of $400000-$500000.

Y.C.’s objective in discussion with Herr Claus- en

C. Yang was in discussions with Herr Claus-en when he immediately identified the weak spots in the construction and successfully convinced him that the asking price of the order was extremely high. Additionally, he provided some useful and valuable advice's on how to improve the certain aspects of the car, following the trends in the electronic toy car industry and reduction of the cost of producing the product.

In discussion with the Herr Claus-en – the buyer, the objective of the Y. C. Yang should be to gain the valuable insights and thoughts on making the product effective and valuable by following the trends in the market and focusing Brobdingnagian achieving innovation into the manufacturing of toy cars.

Since it is apparent that Herr Claus en has enough knowledge and understanding about the dynamics of the market and market trends that should be followed to make the product attractive and appealing; the objective of the Y. C. Yang should be to evaluate and assess the ways of improving the profitability levels of the company and lead the market.

In the similar way;Y. C. Yang should put major emphasis on increasing the brand’s growth and visibility in the market and ways to improve the competitive image in the market. Furthermore, he should put major emphasis over the ways of maximizing the profit returns and growth to expand the business operations and to increase the market shares.

Topic that Y.C. should discuss with Herr Claus-en

In discussion with Herr Claus-en; Y. C. Yang should raise various topics to be discussed, in order to gain valuable insights into the ways of operating business and increasing the market share and making the company more profitable in the long run. The topics that Y.C. should discuss with Herr Claus-en, are as follows:

Assess the viability of accepting the-contract

Before moving to any other topic;Y. C. Yang, in discussion with Herr Clausen, should try to assess the viability as well as the feasibility of accepting the contract to generate revenues, keeping in mind the issues related to accepting the orders from Gross-Veranda, such as an increased cost of hiring the new staff and increasing the production capacity, which require the purchases of the additional machinery and equipment. Knowing whether the benefits outweigh the drawbacks of accepting the order and vice versa, would help in taking decision in the favor of the profitability and long term growth of the company.

Improve certain aspects of the car

C. Yang should stress over the significance of improving the certain aspects of the toy car and follow the industrial trends as it helps in catering the customer’s expectations. It is due to the fact that the response of the industry continues to evolve on the basis of its own experience, goal and taste of parents, and each year different trends in the toy car manufacturing industry become responsible for huge swings in failure and success.

By having a closer look over the ways of improving the features and aspects of toy cars; the company would be able to manufacture toy cars that have original designs with features that tend to inherently fit certain children and help in improving the children’s advancement, thus making the company adaptable to the industrial trends and serve the customers with best quality and trendy products, in order to increase their satisfaction and turn them into loyal customers of the brand. This would help the company to grow in the market and beat the competition.

Reduce cost

The reduction in cost is one of the ways of improving the profit returns, due to which Y. C. Yang should stress over the importance of reducing the cost of business operations, in order to yield greater financial out comes. Also, the reduction in the operating cost tends to be helpful in meeting the competition, in an effective manner.

C. Yang should also assess the ways of using the resources to reduce the cost of production through cost benefit analysis, budgetary control & Planning and Control of Finance and so forth (Kevin Coyle, 2010 ).Finding the ways to reduce the cost, would help Y. C. Yang to accelerate the growth and enhance the productivity.

Pricing guide

Setting the price of the product is one of the core dilemma that should be undertaken effectively. The product’s price should be based on the market analysis, competitor’s analysis and customer’s sensitivity to price. Setting the price of the product predicts the future of the................

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Yang Toy-land, PTE Limited Harvard Case Solution & Analysis