Bluebird Office Products LTD Case Analysis - Essay Example

Comments (0) Cite this document
BLUEBIRD OFFICE PRODUCTS LTD CASE ANALYSIS NAME: INSTITUTION: SUBJECT: DATE: Bluebird Office Product Ltd offers a range of office chairs at three different brands. The Company is facing a predicament of making a decision on whether to adopt various operational strategies with the aim of increasing its earnings before investment and tax (EBIT) and increase its performance…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER95.4% of users find it useful
Bluebird Office Products LTD Case Analysis
Read TextPreview

Extract of sample "Bluebird Office Products LTD Case Analysis"

Download file to see previous pages Speed delivery is at the core in this case. The three branded products had a sales figure of in 6,000,000 Euro 2011. The company’s operating costs stands at 5,500,000 Euro. This figure is projected to increase in the either option advocated for. The level of quality stands at 10% of the operational costs i.e. 550,000 Euro. The Company has a lead time of 12 weeks which it meets 80% in a year. The lead time could be modified to meet delivery speed for the customer. The advocated strategies from the marketing team are outlined below: Option 1 – FINBAR Ltd The customer has a colour that is expected to remain consistent although it will be placing orders according to customer specification. An increase in sales of 1,000,000 euro is projected from the sale of 2000 chairs at 500 euro. This sale is expected at one in every three months. Therefore the projected annual sales will increase by 1,000,000 euros. The impact of adopting the quality need specifications will generate an addition operating expenses. This stands at 825,000 euro. The level of quality maintenance cost is 82,500 euros. Earnings Before Investment and Tax of the company is expected to increase by 175,000 euros. Option 2 – Classy Ltd Classy Ltd will be ordering 500 chairs at 1500 euro generating sales of 750,000 euro. The projected operating expenses will increase by 550,000 euros and the level of quality will cost an extra 55,000 euros. An extra investment in this is needed for 50,000 euros. A total cost increase of 600,000 euros is projected. An increase in earnings before investment and tax is expected to be 150,000 euros. Current performance of the company stands at annual sales of 6,000,000 in 2011 and operating expenses of 5,500,000. The level of quality is maintained at a cost of 10% of the operating costs i.e. 550,000. The present earnings before investment and tax are 500,000 euro. An increase of 35% in earnings before investment and tax is projected if option one is adopted i.e. the Finbar Ltd customer specified products. On the other hand, an increase of 30% in earnings before investment and tax is projected in the coming year if the Classy Ltd strategy of delivery in terms of speed and quality of the products. The company is faced with the situation where it will introduced innovative ideas as well as theme changes in product manufacture process. The time-based delivery aspect for strategy 2 i.e. Classy Ltd will call upon adjusting the lead time of the company to meet the speed at which the customer gets his products. Option 2 has an increase of 55,000 euros in maintaining quality while that of option 1 stands at 82,500 euros. Bluebird is faced with new product development as their case is change in theme but the original product. On the contrary, Classy aims for innovative ideas hence results to new product introduction by the Company. Finbar Ltd might bring a challenge of increasing the product line to meet the increased 2000 chairs production. With the consideration that the supervisor and wages expenses are not increased, this implies that the quality may be compromised in either case if care is not observed. Classy Ltd stands to bring an increment of 30% of the company’s EBIT which is less than 5% that of Finbar Ltd. This option however calls for a fewer number of products. The level of quality maintenance is lower by 27,500 euros. To meet the customers’ ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
(“Bluebird Office Products LTD Case Analysis Essay”, n.d.)
Retrieved de
(Bluebird Office Products LTD Case Analysis Essay)
“Bluebird Office Products LTD Case Analysis Essay”, n.d.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF Bluebird Office Products LTD Case Analysis

Case Study Analysis: Sonoco Products Company

...? Case Study Analysis: Sonoco Products Company This paper provides an analysis of Sonoco Product Company: Building a World-Class Human Resource Organization. In this analysis, the challenges that face Sonoco Products Company to restructure its corporate strategy (for example, Human Resource, structure and products) are outlined. The new strategies are mainly focused on improving the company’s annual growth, and retaining its competitive strength in the ever changing global industrial and consumer packaging industry. Cindy Hartley is the senior Vice President of the company’s Human Resource department, and...
12 Pages(3000 words)Essay

Sun-Rype Products Ltd: Position Summary

...?Financial Position Summary Sun-Rype Products Limited is a Canadian-based company that operates in the beverage industry (Sun-Rype The company engages in the manufacture, and sale of foods and beverages derived from fruits. A financial analysis of the company indicates that the operations engaged in are myriad and spread out over the Canadian markets. This is indicated by the performance of the company’s products in international markets, especially the US food and beverage market. The following analysis of the company will be focused on its financial performance and operational performance in the year 2010, with reference to trends developing over the previous 3 years....
5 Pages(1250 words)Assignment

Cannell Ltd Case Study

...) The employees of any workforce are a large reason behind the success of a company. The case of Connell Ltd is no different—the manufacture of soaps, shampoos and other complimentary toiletries is a labour-intensive process. It is for this reason that the role of the employees is a huge determining factor in the success or failure of the company. I agree with the managing director in that the company should double its spending on training. A well-trained workforce can increase labour productivity and also produce goods at a faster rate. Because employees of Cannell Ltd work in teams, the collaboration among workers helps to either increase or decrease labour...
3 Pages(750 words)Case Study

Avon Products Case Study

... in a competitive environment. In addition, more innovative ideas are to be given out by the company’s employees (Davis, 2007). In case, such a move does not succeed it will be important to use reward system as a method of attracting more employees to come up with new ideas that will keep the organization to be up-to-date. References Bacal, R. (2011). Performance Management 2/E. McGraw-Hill Professional. Davis, T. (2007). Talent Assessment: A New Strategy for Talent Management. Gower Publishing Ltd: Effron, M. (2009). Avon Products, Inc.. New York: John Wiley $ Sons. Harris, O. J., & Hartman, S. J. (2001). Organizational behavior. Routlege. Zofi, Y. (2011). A Manager's Guide to Virtual teams. AMACOM Div American Mgmt Assn.... ? Avon...
5 Pages(1250 words)Case Study

Report for the head office of Electrocom Ltd(Case Study)

...?Interim report for the Head of Electrocom Ltd Interim Report for the Head of Electrocom Ltd Currently at Electrocom Ltd, the culture among the employees is such that even when innovative knowledge is provided to them, it becomes a part of their personal development and does not contribute positively to the organization’s learning curve. Thus the company is reaping no benefit and not moving towards improvement as expected by these initiatives. What Electrocom needs to strive for is becoming a ‘learning organization’. A learning organization is one in which the organizations keeps evolving and learning from past and present practices. The notion of learning is applied to the organization...
4 Pages(1000 words)Essay


...or failure of the company’s international operations (Quintanilla and Ferner, 2003). The HR department adopts numerous ways in which they could attempt homogenization of the various practices that are being adopted in the Headquarter of the company so that the uniformity in the products with respect to the quality can be achieved, as it is the order of the day that the customers insist on the consistency in the product design and quality. Such consistency can be achieved only by integrating the practices throughout the organization. While the HR Management takes the efforts for integration, they are usually confronted with various issues of power and control which are outlined in this paper while...
6 Pages(1500 words)Essay

Stovall home products case

...Stovall Home Products Case Affiliation with more information about affiliation, research grants, conflict of interest and how to contact Stovall Home Products 1247, Oak Avenue St. Louis, MO 00000 Toll Free Telephone: 1-000-523-7777 Fax: 000-523-0000 March 7, 2013 To Ms. Anne J. Thompson 2567, Gulf Shores Way Tallahassee, FL 00000 Dear Thompson, Thank you for allowing us to examine your issues regarding your White Spotique Jacket material turned as ugly yellow after using White – n – Brite Liquid Bleach, Thompson. We learned from your letter that you have used this liquid bleach as a spot remover. However, in the label directions it’s clearly been mentioned that White- n- Brite liquid...
2 Pages(500 words)Essay

Case Study - Rumpole Ltd

...Rumpole Ltd Memo Directors Rumpole Ltd Accountant February 26, Subject: (1) Project Valuation (2) Analysis of Acquisition (3) Production Plan The purpose of this internal report is to present findings on three different tasks required by directors to be performed. These tasks are listed here, and under each section of the report different issues related to these tasks have been elaborated and discussed. 1) Valuation of a project for the production of new product involving costs of $2million. 2) Analysis of Genesis Ltd. that is under consideration for acquisition by Rumpole Ltd. 3) Investigation of a problem with supply of material in the manufacturing department. The above tasks have been supported by detailed calculations... , which...
10 Pages(2500 words)Essay

The Role of Organizational Culture and Preparing the New Employee

14 Pages(3500 words)Research Paper

Merger Analysis: The Staples-Office Depot Case

...Merger Analysis: The Staples-Office Depot Case Facilitator Introduction Management of mergers and amalgamations is a challenging endeavor for both the government, the investors, and their competitors. Mergers are very risky to handle and stand as the greatest gambles in the business world. Mergers first have to go through the legal procedures in order to certify that they do not break any authorized provisions. It is possible for the merger to sail through the process in the first instance. However, with the market dissatisfied, a merger may still be halted by the courts. The Staples-Office Depot case presents an ideal scenario of a merger that may...
11 Pages(2750 words)Term Paper
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Essay on topic Bluebird Office Products LTD Case Analysis for FREE!

Contact Us