Strategic Planning - a Case Study
Case study
Introduction Clifton Industries Ltd. is a relatively small but independent company within the Berbeck Industries Group. Its purpose is to supply a range of products to aircraft manufacturers and its mission is to manufacture electromechanical products for NA and European markets and electronics products for NA market. As can be seen from the SWOT analysis in Appendix A, the company’s current core competencies are skilled labour and diverse manufacturing capabilities. Clifton’s main products are European electromechanical products (“old OE”) and spares and repairs, but due to predicted decline in future sales of these products, Clifton had begun producing electromechanical products (“new OE”) for the N-American market as well as electronic products. The following sections evaluate Clifton’s main product groups from a manufacturing strategy perspective and proposals of improvements, suggestions of other alternatives, etc. will follow as appropriate. It should be noted that the recommendations set forth below are based on assumptions made in Appendix B.
European Electromechanical Products The European (EU) electromechanical products are currently the core product Clifton Industries manufacture, which are gradually being replaced by the electronic equivalent. At the same time, the electronic product can be deemed to be a core competency due to the overwhelming experience with this product when compared to other products manufactured by Clifton. Five forces (for the electromechanical EU product):
• • •
Clifton has low bargaining power with its suppliers as it is one of the smaller companies within Berbeck Industries and doesn’t have domination over the market. Clifton has high bargaining power with its customers due to the nature of contracts (singlesourced). The only rival to this product is the upcoming electronic product which Clifton also manufactures.
The main reason Clifton manufacture the electromechanical product in Europe is because it
Introduction Clifton Industries Ltd. is a relatively small but independent company within the Berbeck Industries Group. Its purpose is to supply a range of products to aircraft manufacturers and its mission is to manufacture electromechanical products for NA and European markets and electronics products for NA market. As can be seen from the SWOT analysis in Appendix A, the company’s current core competencies are skilled labour and diverse manufacturing capabilities. Clifton’s main products are European electromechanical products (“old OE”) and spares and repairs, but due to predicted decline in future sales of these products, Clifton had begun producing electromechanical products (“new OE”) for the N-American market as well as electronic products. The following sections evaluate Clifton’s main product groups from a manufacturing strategy perspective and proposals of improvements, suggestions of other alternatives, etc. will follow as appropriate. It should be noted that the recommendations set forth below are based on assumptions made in Appendix B.
European Electromechanical Products The European (EU) electromechanical products are currently the core product Clifton Industries manufacture, which are gradually being replaced by the electronic equivalent. At the same time, the electronic product can be deemed to be a core competency due to the overwhelming experience with this product when compared to other products manufactured by Clifton. Five forces (for the electromechanical EU product):
• • •
Clifton has low bargaining power with its suppliers as it is one of the smaller companies within Berbeck Industries and doesn’t have domination over the market. Clifton has high bargaining power with its customers due to the nature of contracts (singlesourced). The only rival to this product is the upcoming electronic product which Clifton also manufactures.
The main reason Clifton manufacture the electromechanical product in Europe is because it