【正文】
dly damaged is the relationship with the specialty outlets?216。 Are there alternative outlets to the specialty shops such as internet sales?216。 How will this move affect overall utilization of the operating facilities?q Maintain the mainstream and children’s segment, but sell under a different nameIssues to consider in this approach:216。 Is there demand among the mass and discount distributors for bicycles under their name?216。 What additional advertising and promotions costs might be incurred?216。 What are the expected growth rates of each segment?216。 What is driving the buying habits of the mainstream and children’s market?q Reduce costs through automation and innovationIssues to be considered:216。 What technological improvements are to be made?216。 What are the required investments? 216。 What are the expected returns on those investments?216。 How will these investments affect throughput?216。 To which lines are these investments appropriate? 216。 Are the mainstream and children’s segments potentially “overengineered”?216。 What impact will this have on the required workforce levels?216。 If layoffs are required to achieve the benefits, what impact will this have on labor relations?q Reduce costs through establishing a formal preventive maintenance programIssues to be considered:216。 What organizational changes will be required?216。 What analysis will be performed to determine the appropriate amount of PM?216。 What training is required of the workforce?216。 What technical or system changes are required?216。 How will the unionized workforce respond?Key takeaways:This case can prove to be lengthy and very involved. It is not expected that a candidate would cover all of the above topics, but rather work through selected topics in a logical fashion. It is important that the candidate pursue a solution that considers both revenue and cost issues to impact profit. Additionally, a conadidate’s ability to work fortably with the quantitative side of this case is important. The above remendations for improving profitability are just a few among many. The candidate may e with their own ideas. 5 / 5