Briggs & Stratton Case Analysis Essays

1804 Words Apr 27th, 2011 8 Pages
Briggs & Stratton
Case Analysis

Introduction

History

Stephen F. Briggs and Harold M. Stratton founded Briggs and Stratton Corporation in Milwaukee in 1908. Briggs was an inventor and Stratton was a successful businessman.
The first product developed by Briggs was too expensive to produce and the partners were out of money. In 1909, Briggs filed a patent for a gas engine igniter to replace the existing magneto system in automobiles. This product was the beginning of Briggs and Stratton becoming the largest US producer of switches and locks for automobiles.
Briggs and Stratton tried other products in the 1920’s, but they were not competitive with the Model T. Eventually, Briggs and Stratton came up with a different
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3. The Environmental Protection Agency (EPA) affected the cost of products. (Industry regulation.
4. Employee-high cost (labor cost disadvantage) 5. Japanese exempt from tariff.
6. Vertical Integration
The outdoor power equipment manufacturing (OPE) was not vertically integrated to any significant extent. The industry members manufactured the components and assembled the finished goods, while component manufacturers supplied one or more of the finished goods. Honda and Toro were the only power equipment manufacturers that had vertically integrated backward into components, and at the retail level home centers (Home Depot, Lowe's) n national merchandisers (Wal-Mart, Kmart, Target) were gaining a larger share of the OPE market. Honda's product strength was based on extensive R&D expenditures and cutting-edge technological developments. Briggs and Stratton had improvements in basically every area of the company, but still believed to have a labor cost disadvantage. This resulted in the restructuring of the manufacturing operations with future intentions of operating the new facilities on a nonunion basis.

D. Turbulence Assessment

Future Turbulence (Marketing) 3.5
Future Turbulence (Innovation) 4.3 Performance 1 2 3 4 5 Gap
Future Environmental Turbulence
3.9

Marketing Aggressiveness
3.3 Marginal Innovation Aggressiveness
2.3 Critical

Culture

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