Fantastic Manufacturing Inc. Case Solution & Answer

Fantastic Manufacturing Inc.Case Solution

1. Role of Managers

The role of Fantastic Managers is to assess the firm’s internal and external environment along with the complete analysis of industry. The analysis is described below;

A. Environment of the firm

The company is in the South Carolina. The company has some factors regarding its external environment which are political, economic, social and technological. There is the influence of mostly the laws and the taxes which are imposed by the government and the cost factor as well. As the firm is having the common goods which is ceiling fan and it is considered as the energy saving good. The main factor is cost effective which the firm’s competitive advantage is and it has the high growth because of the normal good and everyone purchases especially in summer season. The environment where it operates is significant for it regarding external and internal.

B. Political and Socioeconomic environment

The worldwide environment in political and social aspect for the ceiling fan industry is quite favorable because it is the basic need of people and everyone acquire it. The globally political environment is good for the industry because the laws of government are effective and the taxes are moderate including the tariff and the import duties. The social environment is positive for the normal goods because they are according to the consumers; demand and suitable for the environment. Furthermore, people are more likely to buy such goods because they are cheap and easily affordable.

C. Domestic environment

The domestic environment is the firms’ internal environment and also where it deals and defines the culture, regulations. Firm’s competencies. Culturally it is having sound position and the laws are favorable. The firm is having the competitive advantage in cost effectiveness and also the high growth rate. The firm’s internal environment is the well-organized as they are having the cost minimization techniques. The strength is it has the high revenue generating firm.

D. Industry Analysis

Porter’s five forces model is used to analyze the industry analysis where the firm operates. As the firm is highly lucrative and having the high growth so there are the rivals of the firm also exist which try to beat in the market and take the cost effectiveness strategy. The firm deals in Taiwan and Hong Kong. They supply goods from their and assemble in the own country. This takes them to have the supplier bargain power and also the increase in cost. Overall the industry analysis is significant for the firm and they are having low competitors.

E. Company’s History, Current Condition And Future Prospectus

Fantastic Corporation was established by David Rose and Pierce Turner. They started company as ceiling fan manufacturer and accepted by the people because of having the normal goods which energy is saving and provides high growth to the firm. They had high revenue in the 1976. Now the firm is manufacturer, importer also provides the assembly line to the product.

The future prospectus of the company is they have to bear the cost while importing and overseas. This process is increasing the cost of goods sold and the revenue is decreasing. The firm is also facing to fulfil the customers’ demand while they have limited inventory. The future prospectus is to complete the fluctuating demand.

2. Problem Identification

  1. The firm has the fluctuating demand which it has to meet and they have to reduce their cost of goods while importing from the overseas. The other issue raises how to compete the rivals in the industry. The firm has inadequate ­stock which is not fulfilled in the summer season and when the demand is greater than the inventory.

B. Alternatives

How to overcome the cost:

  • The firm should decrease the cost of goods by manufacturing the goods in the same country.
  • They should apply the economies of sales concept.
  • They should increase the price of the goods

How to fulfill the demand:

  • The company should have the warehouses to keep the stock in backup
  • They must have the pre-order strategy and decrease the lead time
  • The firm should hire the labors and increase the manufacturing area……………………….
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