Essay on 5-1 Blue Ridge Manufacturing

1169 Words Nov 10th, 2015 5 Pages
Case I: 5-1 Blue Ridge Manufacturing

1. Blue Ridge’s competitive strategy appears to be cost leadership, focusing on a narrow product type and offering for sale only in the southeastern states. Blue Ridge’s limited offering of products, only a sports towel for limited use and distribution, give it an edge in determination as there are only so many materials, designs, and processes required for this one type of product. Though Blue Ridge does focus on just the sports towel, there are still some aspect of differentiation which causes the firm’s competitive strategy to also deviate a bit towards product differentiation. Blue Ridge offers variations of its sports towels aside from its three customary sizes (regular, hand, and midrange),
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ecial Handling Charges 20% x ($1,625.00+$3,425.00) =
$1,010.00 80% x ($1,625.00+$3,425.00) =
$4,040.00
Distribution Management (133/6,108) x ($3,250.00+$2,970.00) =
$135.44 (845/6,108) x ($3,250.00+$2,970.00) =
$860.49 (5,130/6,108) x ($3,250.00+$2,970.00) =
$5,224.07
Marketing, by Customer Type (133/6,108) x $7,760.00 =
$168.97 (845/6,108) x $7,760.00 =
$1,073.54 (5,130/6,108) x $7,760.00 =
$6,517.49
Advertising/
Promotion 25% x $8,910.00 =
$2,227.5 75% x $8,910.00 =
$6,682.50
Marketing (133/6,108) x ($4,875.00+$14,850.00+$3,425.00) =
$504.08 (845/6,108) x ($4,875.00+$14,850.00+$3,425.00) =
$3,202.64 (5,130/6,108) x ($4,875.00+$14,850.00+$3,425.00) =
$19,443.27
Administrative Office Support (112/6,108) x $13,700.00 =
$251.21 (754/6,108) x $13,700.00 =
$1,691.19 (4,737/6,108) x $13,700.00 =
$10,624.90
Licenses, Fees $3,425.00 $58,439.38 $48,203.80 $168,713.51
Total Costs $175,751.41 $132,736.53 $316,300.01
Sales Volume Revenue $308,762.00 $183,744.00 $318,024.00
Profit $133,010.59 $51,007.47 $1,723.99
Customers 8 154 824
Profit Per Customer $16,626.32 $331.21 $2.09

Selling and Administrative Activities Shipping Sales Marketing Other
Entering Purchase Orders 55% x $155,200 = $85,360.00 10% x $68,500 = $6,850.00
Commissions 10% x $155,200 = $15,520.00
Shipping Activities 65% x $32,500 = $21,125.00 15% x $68,500 = $10,275.00
Invoicing 30% x $155,200 =

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