Andrews Company Case Summary

The initial problem for team Andrews
Noted at the beginning of Andrews’ company assessment, their share and profit were at the lowest amongst competitors. Their share price was at 20.96, the profit of the company 3,547,109 and the contribution margin at a low of 24.9 % and a high of 39.3 %. There are many indicators which help one identify why Andrews Company ended up trailing compared to their competitors. For instance, the company’s forecasting was wrong for the following year and they ended up having too much inventory on hand. It was also noted that their material cost and labor cost was high, and the price of the product was low – leading to a low contribution margin. In contrast, competitors with the same prices of product in the same
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In R&D, I have repositioned the product as it was suggested by the market and came closer to the desirable age. In marketing, I made sure to use forecasting techniques to have enough products, but, at the same time, have very little inventory left after the rounds. I made larger investments in Marketing and Sales to increase sales and awareness of the product throughout all 4 rounds. In addition, I invested greatly in Training Hours and Requiting Spending’s in all rounds so as to resolve the issue with people leaving the company. Also, I have taken long-term debt in most rounds to keep up with company’s growth and improvements in the Finance tab. Finally, I paid dividends on outstanding shares to bring up my share price in my last round – showing my investors that we are a good reliable company that they can keep investing in. In TQM tab, I made major investments in all rounds so as to put material, labor and admin costs down to improve company’s efficiency. By investing in TQM, I was able to drive the demand of the product up and increased customer surveys and accessibility of the product. TQM investments helped greatly increase marginal profits by reducing

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