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Crown Cork Seal Company - Case Study Example

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Summary to case study on topic "Crown Cork Seal Company"
SWOT Analysis is a technique that is used to understand the strengths, weakneses, opportunities and threats that an organization may be facing. The importance of this kind of analysis is that it helps an organization to discover opportunities that it can exploit in order to increase its sales returns…
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Crown Cork Seal Company
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Download file "Crown Cork Seal Company" to see previous pages... The strength of the Crown Cork Seal Company had appointed a leader known as McManus who was energetic and made rate of returns of the company to increase as it had previously suffered from heavy losses due to loss of patents. John Connell instituted the aspect of accountability through ensuring that its managers took control of all activities of the company in the right way .
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It also provided quality goods and served the customers in the right way (Bacon 102).
The major weaknesses of the company were; reduction of patents for producing bottle caps for manufactures of soft drinks and brewing companies that lead to stiff competition from competitors in the industry. In April 1957, Bank Trust Company stated that it would not led it any more credit to run its operations thus was at the verge of bankruptcy.
The company realized its opportunities through abandoning its paternalistic culture where the structure of the company was well made to accommodate the ideas of its employees in order to improve on its performance. John Connell set up strategies aimed at reducing the amount of debts through paying bank its debt by reducing its inventory and closing some of its plants that were not generating any income to the organization. The numbers of its staff were as they were not fulfilling their obligations as required thus led to poor performance of the company (Bacon 102). The small change of having may companies demanding for the can products did lead to the declining of the profit margin of the can manufacturing companies
Porter's five forces analysis
It is technical framework that is used to analyze an industry through studying the macroeconomic forces that are close to a company that has an ability to serve the customers in the best way possible as well as increase its sales returns. Strategy consultant uses this technique to evaluate that strategic position of a firm. The forces include; forces of horizontal competition such as threat of substitute products, threat of established firms and threat of new entrants. A vertical force of competition involves the bargaining power of both suppliers and customers of an organization (Grant 64).
The metal industry consist of five firms such as American national Can ,Reynolds metal, Ball corporation, Corn cork seal, Van Dorn company, continental can and Heekin can companiys.These companies faced stiff competition from other companies that used aluminum and steel to make containers for packing their products. The company's included; Brewering Company's and soft drink bottlers. For instance the soft drink and brewering companies wanted to have greater economies of scale through having a suitable market share by obtaining price discounts for their packaging materials.
The shrinking of customer base and overcapacity for the packaging materials led to the decline of profit margins of the manufacturing company while at the same time can manufactures had their profit margins declining due to offering discounts in order to protect their market shares in the industry (Grant 64).
The company's facilities were dilapidated therefore could not generate income for the organization. The cost of production and transportation was quite high. The key issues that the company should be focused on include; dealing in product lines that are profitable since there were many companies in ...Download file "Crown Cork Seal Company" to see next pagesRead More
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