...Chase Strategy In the service industry, demand and production capacity is dependent on the nature of the business. The chase strategy is defined as matching demand and capacity period by period (Inman, 2015). In some businesses that have peaked seasons or low demand periods, like a football stadium or summer camp, this could cause some worry for employees or staffing needs; however, not all businesses treat the chase strategy the same. Certain types of industries have a set protocol in place for these types of slow business periods. All companies that operate in the traditional food industry (excluding Fast Food Industry) can use a chase strategy. Under the chase strategy, an organization produces only enough goods to meet or exactly match the demand for their goods. For a restaurant such as Outback, it only produces a meal if a customer orders that meal. It does not make sense for Outback to create a meal for a customer that did not place an order because the meal is dependent on the customer’s preference. The chase strategy helps Outback maintain lower inventories on finish goods inventory. Organizations that experience major seasonal demand fluctuations are prime candidates for using a chase strategy. UPS and other shipping companies typically hire thousands of temporary employees to meet demand during the Christmas holiday period. For 2014, UPS planned to hire 95,000 seasonal workers based on increased holiday spending projections, primarily driven by strong online...
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...Learning Team “A” Reflection Week 3 \\ OPS/571 October 12, 2015 Dr. Learning Team “A” Reflection Week 3 This week’s discussion of chase strategy matched well with discussions last week related to fast food and Wendy’s in particular. Team A explores chase strategy how Wendy’s, our company of choice from last week’s assignment met these requirements. The Chase Strategy Defined/ Companies Utilizing the Chase Strategy The Chase Strategy is a part of the production planning strategy. It involves trade-offs with workforce size, work hours, inventory and back logs. According to Jacobs and Chase (2011), match the production rate to the order rate by hiring and laying off employees as the order rate varies. The success of this strategy depends on having a pool of easily trained applicants to draw on as order volumes increase. The caveat to this strategy is that employees may feel unmotivated to produce at a higher rate if there’s not much work. This lack of motivation is due to a decrease in the workload and employees may try to stretch the time it takes to process an order or task out of fear of being terminated. This may happen in companies that use a made-to-order approach and may have highs and lows in their production process. Companies that may use the Chase strategy is an automotive company such as Ford Motor Company and temporary agencies that place applicants to a specific job need for a certain period of time. The process is due to aggregate planning...
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...Learning Team Reflection: Chase Strategy OPS/571 June 24, 2013 Chase strategy is when production meets the demand and capacity from one period to the next. This strategy is mostly used when demand is unpredictable and there is no inventory. Many cases when using this strategy result in a hire turnover rate when it comes to employment which can lead to insecure and unhappy employees. Problems with labor unions may arise as well. Other results of this strategy include increased inventory costs and erratic use of factories and equipment. This allows factories to have a large amount of flexibility. A major advantage of the strategy is that inventory is allowed at its lowest level which can provide a savings to some companies. The just-in concept firms utilize the chase strategy to aggregate planning. There are many companies that prefer to use a combination of the level and chase strategy. The combination enables optimization of goals and lower costs more so than independently. Companies and businesses within the service industry that use this strategy are demand matching which means that the workforce must match the demand. Another example of an industry that uses the chase strategy is the auto industry. Companies like Ford, GM, and Hyundai have automobiles that depreciate quickly and the cost of warehousing, insurance, and taxes are high. Automobiles cannot be stockpiled for too long so therefore, only so many are made based on demand of the consumer. Another example...
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...The chase strategy is a tool used throughout many companies to meet the demand for their products. In this paper it will define what the chase strategy is. This paper will also identify 2-3 companies that might use the chase strategy. Finally this paper will list some of the challenges associated with using the chase strategy and why. The chase strategy is a tool used throughout many companies to meet the demand for their products. In this paper it will define what the chase strategy is. This paper will also identify 2-3 companies that might use the chase strategy. Finally this paper will list some of the challenges associated with using the chase strategy and why. The chase strategy is a tool used throughout many companies to meet the demand for their products. In this paper it will define what the chase strategy is. This paper will also identify 2-3 companies that might use the chase strategy. Finally this paper will list some of the challenges associated with using the chase strategy and why. The chase strategy is a tool used throughout many companies to meet the demand for their products. In this paper it will define what the chase strategy is. This paper will also identify 2-3 companies that might use the chase strategy. Finally this paper will list some of the challenges associated with using the chase strategy and why. The chase strategy is a tool used throughout many companies to meet the demand for their products. In this paper it will define what the chase strategy...
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...Case Study: Chase’s Strategy for Syndicating the Hong Kong Disneyland Loan (A) Q1. How should Chase have bid in the first round competition to lead the HK$3.3 billion Disneyland financing? 1.Three ways to approach this deal 1) bid to win, 2) bid to lose and3) no bid. Chase chose to bid to lose on the first round, but just enough to make it to the short list. Also, since Chase is one of Disney's relationship banks, Chase would not want to ruin this relationship by not bidding on their project. If Chase wanted to lead the competition from the first round, they should have made a bid that was more aggressive and aimed to win. This bid would have been closer to the desires of Disney, making them more appealing and increasing their probabilities of leading the financing. However, they chose to bid to lose, with just enough terms to get into the second round to "protect their reputation", but not to lead. The deal started to become more attractive with the possibility of Disney awarding a sole lead arranger mandate and with the increased potential for a successful syndication. At this point, after Chase made it through the first round, they decided on a more aggressive final proposal where they would be very close to meeting most of Disney’s demands in order to win the deal. 2. Standard Commitment Letter The standard commitment letter established by Chase for the Disneyland project would have the following terms: 1. HK$300 million loan. 2. 15-year maturity...
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...Strategy Learning Team Reflection: Chase Strategy Carla Brown, Christine Denson, Shacorra Hall, Danielle McGregor, Donnie Phillips OPS 571 October 1, 2015 Dr. Deborah Jones Learning Team Reflection: Chase Strategy Chase Strategy: Introduction Learning Tea A will discuss the Chase strategy. The examination of two companies that may benefit from the utilization of the Chase strategy will take place. Challenges a company may face implementing the Chase strategy within their organization is researched. Advantages and disadvantages of the Chase strategy are identified. Whether intentionally or unintentionally all companies depend on a form of demand generation strategy. The Chase strategy is best recognized when production meets demand from one period to the next. The strategy is most effective when demand is unpredictable and there is no inventory. According to "Chase Strategy Basics: A Lead Generation How-To" (2014), "The basic principle of the Chase Strategy is to identify the market you want to target with your marketing, and create a profile of potential buyers” (Chase Strategy Basics). Companies create a database of potential customers, and then take steps to get leads and turn leads to sales. The chase strategy concentrates selectively targeted accounts. The chase strategy is not for every business. As with all tactics, there are pros and cons with the Chase strategy. Some advantages when applying the Chase strategy are aggregating planning; inventory is allowed...
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...Jiang Zhaojie Wang On August 10th 1999, Disney awarded the sole mandate to Chase Manhattan Bank for the Hong Kong Disneyland financing of HK $3.3 Billion. We believe this decision was beneficial for both parties. For Chase, the rewards included underwriting fee, interest payments, being a part of a big loan-financing project in Asia and developing networks and relationships with Asian governments and companies. This outweighed the risks of underwriting risk, credit risk and long-term collateral risk. In addition, we believe it was the correct decision to initially bid to lose and then change this approach once there was concrete support from the HK government. From Disney’s perspective, despite Chase’s standard commitment letter leaving them slightly vulnerable, choosing Chase as sole mandate made the most sense. Due to the unique nature of the loan (extreme long term, Disney’s desire to use operating cash flow for expansion and the principal collateral being non-existent for first 2 years), it made sense for Disney to choose a company that has a strong relationship with and one that was extremely flexible on the structuring of the loan. Finally, we believe the most suitable syndication strategy is to be Chase as the sole mandate with a two-stage syndication process and sub-underwriting (exhibit 8a) Chase Manhattan Bank made a smart initial decision by attempting to bid to lose. This strategy was ideal because due to the uniqueness of the loan it posed several credit issues...
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... The customer still picks an item from the menu, but the customer service representative will take the order and give the food to the customer (Jacobs & Chase, 2010, Chapter 16). These types of companies us a chase strategy, which continuously matches capacity with changing levels of demand. The chase strategy has its advantages, but it also has many challenges, which can cause an organization and its workers grief. Some of the companies that Team D identified as using the chase strategy are Applebee’s, McDonalds and Ford. The following paper will discuss the chase strategy, why these organizations would use it, and the challenges the companies could experience using the strategy. The Chase Strategy The chase strategy requires a business owner to have enough trained employees to take orders, prepare the products for consumption, and deliver the food. In addition, the resources need to know how to run a computer system to charge the customer for the food and service. It is critical for companies to obtain these resources to meet the demands for the products. Companies can use incentives to help motivate their staff to sell additional products by mentioning the options for desserts, custom orders, and adding on additional products to their orders (Jacobs & Chase, 2010, Chapter 16). The chase strategy requires an...
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...working business. This paper will provide a comprehensive analysis into one of the largest financial institutions in the United States JP Morgan Chase and Company. These topics include the following: 1. The History of the firm. 2. The Environment of the Business. 3. The Business operations tactics of the firm. 4. The Human Capital of the firm. 5. The Marketing and Pricing tactics of the firm. 6. The Distribution and Promotional tactics of the firm. 7. The Investor Relations of the firm. Business History Whether, it’s John D. Rockefeller and The Standard Oil Company, Andrew Carnegie and Pittsburgh steel industry, or the railroad tycoon Cornelius Vanderbilt. Most of us in business are truly fascinated by the accomplishments of individuals and the companies they founded that became such great American institutions of finance and industry. So we as spectators and future entrepreneurs always want to know the four W’s when inquiring about the origins of a great businesses such as the aforementioned. Who, What, When, Why? But we also want the most important HOW? How did they become titans of industry that they are. Provided in this topic will be answers to these questions and more in this description of JP Morgan Chase and Company. The origins of JP Morgan Chase can be traced back to the late 1790’s when then United States Senator Aaron Burr founded The Bank of The...
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...1. Chase’s International Strategy and Objectives As the largest bank in the United States by assets and market capitalization, JPMorgan Chase is a major provider of financial services with assets of $2 trillion and according to Forbes magazine is the world’s largest public company based on a composite ranking. Being one of Disney’s top 10 relationship banks, Chase was the third largest bank in the United States with more than $400 billion of assets and $175 billion of loans in 1999, and was a leader in the field of syndicated finance. In 1999, Chase was the lead arranger for 34% of total syndicated loans by dollar volume in the world’s largest market, the United States, compared to 21% for the next largest competitor.6 In the U.S. market for loans greater than $1 billion, its dominance was even more pronounced: it led 47.5% of the deals, three times more than its nearest competitor. Years of leading performance in the field of syndicated finance has led JPMorgan Chase a world’s well-known expertise in arranging large volume syndicated loans and thus significantly improved its returns as an underwriter, and its credit exposure as a lender, which reflect its high criteria of service. In addition to the great reputation, Chase has established relationships with many of the world’s famous companies and groups, which will bring it lots of business opportunities. It had over 400 professionals in its Global Syndicated Finance Group with offices in New York, London...
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...Solution FoldRite Furniture Company Solution Costs | Sub-contracting | Chase strategy | Level strategy | Stable workforce strategy | Regular production | 7,062,200 | 6,978,314 | 7,062,200 | 7,062,200 | Subcontracting | 767,315 | | | | Hiring | | 4,890 | | | Overtime | | | | 959,143 | Layoff | | 1,926,080 | | | Excess inventory | | | 2,426,919 | 2,426,919 | Shortage | | | 1,929,972 | | TOTAL | 7,829,515 | 8,909,284 | 11,419,091 | 10,448,262 | The table compares the total costs using the sub-contracting, Chase, Level and Stable workforce strategies. Reviewing the data above, one may choose the subcontracting strategy. However, while calculating the cost incurred, the holding cost of inventory has not been added. The holding cost of inventory will be $2,426,919. Including this cost will increase the total to $10,256,434. Inventory cost must also be considered and the subcontracting strategy leads to more than the two-week inventory constraint. In addition, the subcontracting strategy inventory levels fall below the minimum required. The Level and Stable workforce strategies will be even more costly than the Sub-contracting strategy. Thus, we suggest that FoldRite use the Chase strategy. The chase strategy is the most profitable and the sales forecasts will be met. There is a significant concern with the Chase strategy. It may impact the morale negatively. To minimize this effect, the company should not hire...
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...BFF5130 BFF5130 Case Study 4 Chase-Disney -Syndicated loans Qiumin Liu 25388789 Case Study 4 Chase-Disney -Syndicated loans Qiumin Liu 25388789 Introduction Summary: In late 1999, the Walt Disney Co. and the Hong Kong government agreed to develop Hong Kong Disneyland, a theme park and resort complex worth HK$28 billion, which planned to open in late 2005. The selected underwriter, Chase Manhattan Bank, needed to raise HK$3.3 billion of non-recourse bank loans for construction and working capital of the project. Problem: The key concerns facing Chase were whether to bid at all, how to bid and how to structure the syndication to meet the borrower’s needs and its own profit objectives and the market’s expectation for an attractively priced credit. And also the participants of the syndicated loan must be identified. That is, whether to pursue a sub-underwriting and if so, whom to invited. Strategy Analysis: We need to analyze the three possible strategy options to determine which one is better. Please refer to Appendix 1 for option 1, Appendix 2 for option 2 and Appendix 3 for option3 to see the detailed calculation. Strategy | 1 | 2 | 3 | Mandate | Sole | Joint | Sole | Sub-Underwriting | Yes | No | No | No. of banks involved | 15 | 18 | 21 | Total income ($HK000) | $13,850 | $8,783 | $23,050 | Pool Income ($HK000) | $1,000 | $1,900 | $2,800 | Summarized through Appendix 1,2,3. * Strategy 1: Chase would be the sole mandated lead arranger...
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...setting or often approached by companies to identify business’ internal environment in respect to the value it creates, delivers and captures. First of all, business model depends on the type of products or service a company offers and to whom. In a given case, Chase and Danielson recognized possibilities in car-sharing business idea and ventured a deal. Zipcar emerged as a start-up company which offers car sharing service operating on a B2C basis. Zipcar offers on-demand vehicles and delivers mobile and timesaving service focusing on urban areas and its residents. Consequently, Zipcar business model in terms of its target market is segmented mostly according to geographic and psychographic factors (urban area people). As it follows, Zipcar mission statement flows out of its business model and aims to enable simple and responsible urban living. Business model most of the time integrates or is integrated within business strategy. Since Zipcar offers transportation service its business model/strategy in the first place is the car-sharing concept. Secondly, according to Ansoff’s Matrix framework, Zipcar business strategy is market development as long as the company offered existing product to a new geographic market. Chase and Danielson recognized the implicit need in a new market for already existing product/service on time and went for it. Zipcar was designed to offer car-sharing idea which evoked and brought that same hidden need onto the surface developing company’s potential...
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...Factors-------------------------------------------------------------------4 Key Success Factors-----------------------------------------------------------------------------------6 Driving Forces------------------------------------------------------------------------------------------8 Industry Competitors-----------------------------------------------------------------------------------9 Strategic Map-------------------------------------------------------------------------------------------10 Strategic Position Hambrick Model---------------------------------------------------------------------------------------12 SWOT Analysis----------------------------------------------------------------------------------------14 Company Competitive Strategy----------------------------------------------------------------------17 Leadership and Corporation Culture-----------------------------------------------------------------19 Company Resources and Competencies-------------------------------------------------------------21 Competitive Strength Assessment--------------------------------------------------------------------23 Financial Performance---------------------------------------------------------------------------------23 Stock Overview-----------------------------------------------------------------------------------------24 Profit Margin (3 Years)--------------------------------------------------------------------------------24 Return On Equity...
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...Supply Chain Design Paper OPS/571 Operations Management Supply Chain Design Paper Supply Chain Strategy, Riordan Industries Supply chains are adapting and upgrading to new technologies around the world. Supply chain management and strategies will be discussed to new hires in Hangzhou, China. Riordan Manufacturing can use the supply chain management theory to help each function in the supply chain connect and become more efficient. Riordan Manufacturing plans to use a competitive strategy and “go green.” Riordan’s customer fulfillment mission is to “strive to be a solution provider for our customers and not be a part of our customer’s challenges” (University of Phoenix, 2013, p. 1). Riordan Manufacturing wants new hires to use process thinking to achieve improvement in business practices and enhance the way tasks are done. Process Flow Diagram Electric fan manufacturing is one of the key sectors of Riordan Manufacturing with its plant located in China. In essence, the company conducts the fan assembly process from within and outsources non-core operations. The motors and plastic polymers are completely assembled and purchased from local Chinese company, whereas the logistics are outsourced to a local shipping company or FedEx. The operations done inside the company only include the creation of individual plastic parts of the fan, the assembly of the parts, packing of the fans, and temporary storage until the fans are shipped to the consumers. The summary of the supply...
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