...Quality Metal Service Center Case Analysis Company History Quality Metal Service Center was established in the late 1800s as a local metals distribution center. By 1992, it had grown into a national metal distribution company operating in four geographic regions-each of which contained about six districts. The company had experienced rapid sales growth along with the geographic expansion since the 1920s. In 1991, Quality Metal posted sales in excess of $750 million. In March, 1992, the president and CEO, Edward Brown, questioned the effectiveness of the company’s controls. He stated, “I don’t know if our controls have inhibited managers from pursuing our goals of aggressive growth and above-average return on assets, as compared to the industry…” (Anthony & Govindarajan, 2007, p. 300). Anthony and Govindarajan (2007) indicated in the years leading up to the 1990s, the metal distribution industry was “regarded as a mature, highly competitive, and fragmented industry.” There were, however, within the metal industry some important indicators that could enhance the growth potential of the metal service center sector. Anthony and Govindarajan (2007) identified three trends within the industry. One was the steel mill’s retrenchment. Product lines had been dropped, customer service staff had been reduced and specialty products were eliminated. The second trend included the implementation of a “just-in-time” inventory management system. Metal users reduced costs...
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...Case 7-3 Quality Metal Service Center In early March 1992, Edward Brown was President and CEO of Quality Metal Service Centers with the following comment: Although I am satisfied with the company's past performance, I believe that we have the ability to increase sales and profitability. Given the expansion of the market and competitive position, it is my feeling that we have missed certain opportunities to grow. I do not know if our government system has been to discourage managers to adhere to the objectives of the company, which is growing fast and being above average ROA compared with other companies in the industry. I want you to have it in mind when you are evaluating our system. proliferation Metal industry Metal Service Centers purchase from many factories (e.mills), including USX, Bethlehem, Alcoa, Reynolds and smaller companies like Crucible, Northwestern and Youngstown . These suppliers sell products in large batches. By doing this they maximize the throughput capacity of large production end collisions (e.run). Service Centers sells its consumers in smaller batches and shorter processing time. The distribution of metal industry was generally considered of mature, highly competitive and sundering industry. Still has a lot of firsts in the industry who have given Service Centers opportunity to grow. cuts in steel plant in their effort to be more competitive by increasing production capacity, most large national metal manufacturers have been withdrawn product lines by...
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...Case 3: Quality Metal Service Center EXECUTIVE SUMMARY Quality Metal Service Center specializes in buying metals from steel mills in large lots and distributing it in smaller lots with shorter lead time to metal users. The Company started out as a local distributor but has now expanded into 27 locations nationwide. The Company strategy involves 3 Things: 1.) Focus on Specialty products such as high-technology metals which provides higher returns and contributes about 60% of the Company’s Revenue, 2.) Identification of where these metals are consumed. The development of the industry’s first metal usage data base by the Company helped them decide where to expand. Lastly, 3.) Increasing market share through value-added services offered to customers such as Account Support for Just-in-Time Ordering and other processing services for cutting, polishing, and others. These strategies are aligned with the key trends happening in the industry. In order to satisfy customer needs, the Company needs to bank on specialized products and be able to provide these to customers applying JIT process which means more frequent deliveries at lesser lead time. Upon examination of one district in the Company, a pending proposal about an additional investment in equipment was raised to the District Manager. The equipment will help in further processing its products in order to fulfil the customer needs. Currently, the process is being outsourced in another district which affects the lead time....
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...Case Study : 7-3 Quality Metal Servce Center CASE STUDY : 7-3 QUAlLITY METAL SERVCE CENTER Q1. Is the capital investment proposal described in Exhibit 3 an attractive one for Quality Metal Service Center? Yes, the purpose of a company is to maximum the profit, and as Elizabeth Barret suggested,it can help company to make more profit. So the capital investment proposal described in Exhibit 3 is an attractive on for QMSC. Investment in machine $540,000 10 years cash inflow $286,000 PV of cash inflow $39,182 Payback period = 4.5 years NPV= 286000 IRR= 2.8% Reasons for selection: * Positive cash flow * IRR> COC * Payback period is less than the standard Q 2: Should Ken Richards send that proposal to home office for approval? Ken need send this proposal to home office for approval, because this proposal is good for the company and can make a lot of profit for the company. And another reason is, capitalexpenditures in excess of $10,000 and all capital leasing decisions require corporate approval. Q 3: Comment on the general usefulness of ROA as the basis of evaluating district managers performance. Could this performance measure be made more effective? The Return on Assets (ROA) percentage shows how profitable a company's assets are ingenerating revenue.An indicator of how profitable a company is relative to its total assets.ROA gives an idea as to how efficient management is at using its assets to generate earnings...
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...CASE STUDY : 7-3 QUAlLITY METAL SERVCE CENTER Q1. Is the capital investment proposal described in Exhibit 3 an attractive one for Quality Metal Service Center? Yes, the purpose of a company is to maximum the profit, and as Elizabeth Barret suggested,it can help company to make more profit. So the capital investment proposal described in Exhibit 3 is an attractive on for QMSC. Investment in machine $540,000 10 years cash inflow $286,000 PV of cash inflow $39,182 Payback period = 4.5 years NPV= 286000 IRR= 2.8% Reasons for selection: * Positive cash flow * IRR> COC * Payback period is less than the standard Q 2: Should Ken Richards send that proposal to home office for approval? Ken need send this proposal to home office for approval, because this proposal is good for the company and can make a lot of profit for the company. And another reason is, capitalexpenditures in excess of $10,000 and all capital leasing decisions require corporate approval. Q 3: Comment on the general usefulness of ROA as the basis of evaluating district managers performance. Could this performance measure be made more effective? The Return on Assets (ROA) percentage shows how profitable a company's assets are ingenerating revenue.An indicator of how profitable a company is relative to its total assets.ROA gives an idea as to how efficient management is at using its assets to generate earnings. ROA can be computed as Net Income/ Total Assets.To make it more effective QMSC can use:...
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...Case 7.3 Quality Metal Service Center 1. Is the capital investment proposal described in Exhibit 3 and attractive one for Quality Metal Service Center? Yes, the purpose of a company is to maximum the profit, and as Elizabeth Barret suggested, it can help company to make more profit. So the capital investment proposal described in Exhibit 3 is an attractive on for QMSC. Investment in machine: $540,000 10 years cash inflow: $286,000 PV of cash inflow: $39,182 The project evaluation seems to be beneficial to the company: A. Payback period: 4.5 years less than the company’s criterion of 10 years B. Internal rate of return: 21.8% c. Net present value (at 15% cost of capital): $286,000 The proposal seems to be an attractive one due to the fact that there seems to be a need in the district, for this particular district to have the ability to perform some preproduction processing which is beneficial to local customers. The investment seems to be within company parameters and sounds attractive. 2. Should Ken Richards sent that proposal to home office for approval? Basing Ken’s decision on his incentive bonus, I would think that he would toss the proposal in the trash. But if he looks into it further he may see an alternate decision. Exhibit 5 only reflects marginal effects of project implementation-that is, an addition of earnings before taxes of $40,000 and an addition to assets of $720,000. Otherwise, the Exhibit assumes that other district operations meet targets exactly...
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...Corporate Internship Report “Steel Service Center in Indian Steel Market & It’s Relevance to JSPL’s Future Expansion” Internship Report submitted as a partial requirement for the award of the two year Master of Business Administration Program Submitted by Vinay Aggarwal 08609086 MBA (2008-2010) Company Guide Faculty Guide Mr. Subimal K. Sarmah Ms. Dimple Grover Asst. General Manager (Marketing Dept.) Jaypee Business School Jindal Steel & Power Limited Jaypee Business School (A constituent of Jaypee Institute of Information Technology University) (A-10, Sector 62, Noida (UP) India-201307) ...
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...1.0 Introduction Eastern gear Inc. is a manufacturer of custom made gears ranging in weight from a few ounces to over 50 pounds. The gears are made of different metals depending on the customer’s requirements. Eastern gear sells its products primarily to engineering research and development laboratories or very small manufacturers. The president of Eastern Gear decided to accept a few larger orders for 100 gears or more. Although lower prices were accepted on these orders, they helped pay the overhead. It was found that the large orders caused many of the small orders to wait for a long time before being processed. As a result some deliveries of small orders were late. Roger Rhodes had faced many problems and the major problem is not having an efficient production line. The current production process is inefficient and disorganized. After consideration of several alternatives, we have found some major problems that occur in Eastern Gear Inc. The problem that have been analyse is the problem in term of raw materials, production flows, factory layout, poor quality control checks, unproductive way to rush orders and others The problems come from the process design that is inefficient. They also are lacking an organized quality control program. This has resulted in the doubling of production times and a six percent return rate on orders. As the president, he needs to take a responsible by doing actions to solve all the problems that occurred. The actions that should be properly working...
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...its negative outcomes. When we recycle it benefits the environment, because there less demand for raw material, which is extracted from the earth. By recycling we can just melt and process the material we already have and use it again and again. We do not have to use it for the same thing we could use the material for other purposes. When aluminum is recycled as well as plastic you receive a CRV back, which is a tax that is charged to the consumer when he or she purchased the product. Not everybody likes to donate money to the government and by taking their aluminum cans and plastic bottles to a recycling center he or she receives in return their money. Recycling saves space in landfills, allowing them to have more room trash. There are a few negative outcomes from recycling. For example, it takes time to collect the materials and to take them to the nearest recycling center. The drive there alone is frustrating at times when there is heavy traffic, and not to say all the fuel burned by the vehicles. Some people just simply do not have the...
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...A Brief Understanding of IBS ‐‐A Case Study of Toyota A Brief Understanding of International Business Strategy --A Case Study of Toyota by Peter LIU, peterliu@acculine‐mfg.com MSc International Business P14B45 International Business Strategy Lecturer: Dr Yee Kwan Tang Sponsored by 10 May 2010 Acculine Precision Manufacturing Company Tel: 0086-574-28887315, Fax: 0086-574-28875303, Web: www.acculine-mfg.com, email: info@acculine-mfg.com A Brief Understanding of IBS --A Case Study of Toyota Page 1 / 12 Content Introduction ........................................................................................................................... 2 Basic Concept of International Business Strategy ................................................................. 2 Brief Background of The World Auto Industry .................................................................... 4 Brief Background of Toyota .................................................................................................. 4 IBS of Toyota ........................................................................................................................ 6 Entry to US Market ........................................................................................................... 7 Americanization as A Way of Localization ...................................................................... 8 Recommendations...
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...reliable, and cost-efficient smart meter solution for greater operational efficiency, customer reliability and, energy efficiency. Smart Metering System: it consisting of Smart meters – two-way communications-enabled meters that capture the amount of power consumed when it occurred – plus metering telecommunications and an Automated Data Collection System. Program Delivery Scope: The scope consisting of overall activities and services including project management and controls such as inspection and quality control; revenue meter deployment; customer complaint handling; administration and contract management; information and data coordination, stakeholder engagement and community communications. Organizational Structure: An organizational structure has been designed to facilitate delivery of the smart metering (SM) Program. The considered key units are 1. Meter Deployment Office which is responsible for delivering the entire smart meter installation; it is liable to organize and coordinate deployment teams, crews and technicians in the service centers. 2. Meter and Customer Data Coordination Office which is responsible to organize every meter change related data and send to the Regional billing system. 3....
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...American Military University Prof Kageorgis Throughout this paper we will review all the concepts regarding the ISDN and DSL technologies, definition, usage, benefits overall and costs. We will also compare to newer technologies overall to understand where our connections capabilities were and where they are over today’s date and where it is going. ISDN (Integrated Services for Digital Network) is a standard way to communicate digital transmission of data, voice, video and other network devices at the same at the same time over the traditional ‘’phone lines’’, basic telephone copper wires, called RJ-48 connectors. Prior to ISDN, the telephone system was only related to voice transportation, with very limited to none data service availability. The ISDN has the capability to support at least two or more connections at the same time, in any combination of voice, data, fax and video over a single line. At first ISDN speeds were only at max 128 kbits over download and upload speeds. Eventually carried over an E1, speed rates could be at 2048 kbps. (PC Magazine, 2001) ISDN-BRI (Basic Rate Interface), service is delivered through a pair of standard telephone copper wires at 128 kbps rate. Following available interfaces and their characteristics: * U Interface, usually a non-North American network, two wired interface between the network terminating unit and the exchange. * T Interface is a serial interface between a terminal adapter and a computer device, a digital very...
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...Introduction O’NEAL Steel Inc. is the largest, privately owned, family-run metals service business in the industry, established in 1921. The company has yearly revenue of around $3 billion dollars, and has 83 facilities that spread across 10 countries. They specialize in metals processing from gas, laser, and plasma cutting to full-blown machine center operations, metal forming, machine welding, and sub-assembly in a manufacturing cell or job shop environment. They also distribute a number of products, with little or no value added. The hybrid of a job shop and distributorship is an awkward combination and adds a large amount of complexity within the firm, as the business models of the two are classically quite dissimilar. There are a number of outputs that O’NEAL manufactures that are recognizable or at least of some casual interest. They create the casings and instrument mounts for JDAMs, Joint Direct Attack Munitions, which convert traditional bombs into the smart variety. They also create the uprights and frames for the HID lighting that the Department of Transportation uses when working on the highways, bridges, and streets, after nightfall and large chassis parts of fork trucks, bucket loaders, and other heavy construction equipment. There are two plants located in Greensboro. They are officially referred to as Greensboro 1 and Greensboro 2, but are internally referred to as G1 and G2. G1 was a plant built to O’NEAL’s specifications in 1989 off...
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...escribe the strengths and weaknesses in planning and control systemVershire Company!Settlement:a. Pros:1. In 1972 the industry experienced a revolution since the aluminum maker chosetwo kinds of processes in which a piece of metal inserted into the cupand closed at the top. So in 1996 capable of producing more than2,000 cans per minute, because it has more efficient manufacturing processes.2. Authorization limitation on the general manager of the division. Division general manager hasfull control on their business with two exceptions: the increase incapital and labor relations, because both are centered at the central office.3. The existence of the review by the research staff at headquarters preparation statementssubmitted by each division general manager. This is a reportpreparation to incorporate summaries regarding sales,earnings, and capital requests for next year's budget.4. The making of the budget in the form of gross profit, fixed expenses, andpre-tax income made by the order to each plant. Gain is calculatedas the value of sales budget is smaller than an unexpected expense budgetand the budget you have for sure.5. For a review of variance whose value exceeds the budget made by themanagement company, and ask a local plant manager notmeet the target to explain.6. The existence of the fixed costs of testing to determine whether the factory has beenimplementing programs, whether the factory has met the cost of the budget,and whether the results...
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...ue [pic] Final paper Lars Isaksaetre, Henrik Oiseth, and Jason Casey BUSA 499, Section One Professor Pham May 13, 2009 Table of contents Executive summary……………………………………………………………… page 2 Company profile…………………………………………………………………… page 3 Overview of the jewelry industry………………………………………………. page 4 External environment………………………………………………………… page 5 Industry analysis……………………………………………………………… page 10 Jewelry supply chain…………………………………………………………. page 16 Industry value chain, Jewelry Retail………………………………………….. page 19 Company analysis……………………………………………………………… page 24 SWOT…………………………………………………………………………… page 46 Financial ratios…………………………………………………………………… page 50 Strategies………………………………………………………………………… page 53 Preferred strategy……………………………………………………………….. page 60 EVA……………………………………………………………………………… page 62 Blue Nile balance sheet…………………………………………………………… page 63 References…………………………………………………………………………. Page 64 Executive Summary Blue Nile is a publicly traded company. The company was established in 1999 and is headquartered in Seattle, WA and is one of leading online retailers of diamonds and fine jewelry. In addition to serving the U.S. market, Blue Nile offers products to selected countries through its Canadian and UK websites. 70% of their sales are from engagement rings and wedding bands and they are known for being a high-end jewelry retailer. The company offers its products on its websites without actually holding the...
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