CASEY STUDY ANALYSIS

Casey Study Analysis

Casey Study Analysis

1) Identify And Summarize The Problems Confronting The Company.

According to Gillian's outlooks, while there will be an increase in ranch shop sales by 50%, there will be a down turn in retail stores sales by 13.3% in 2004 . However, these outlooks are improbable to arrive true. Firstly, its retail shops sales has advanced by 75% on mean of each year, and its ranch shop sales has advanced by 28% on average each year for the latest five years. It may be unreasonable that she spectacularly alterations these recent growth tendencies on her outlook without any components that could influence on both channels. Secondly, since the pts 1000 market in the UK is mature and stable , sudden changes of previous trend hardly happen excepting entering strong new players into the region, spoiling the farm's reputation hugely and investing tremendously on the marketing for its farm shop. Moreover, in terms of Koala tech ltd's managing on its farm visitors, this sudden change of the number of visitors could lead to collapses of its operations. These causes considered overhead clearly display that Gillian's demand forecast is not reliable. Hence, they have to outlook in the other way.

Gillian desires to boost the number of pts 1000 flavours from four to ten. However, this line elongation can cause the following problems.

First of all, numerous goods of somewhat lower demand items would be eradicated due to their expiration dates. In 1999, the Pts 1000 Alliance released the designated day of peak ten pts 1000 flavour in the UK in 1998 . I can assume that, when Koala tech ltd produced all of these ten items, the share of each item in their products would be the same as the market shares of each flavour pts 1000 in the whole market. The pieces that total demands are less than 1,516 litres per annum, hence underneath the fourth place, should not be made because it is conspicuous that the pieces would be abolished due to their expiration dates . Moreover, in the case of retail sales, the smallest annual demand for each piece is 3,035 litres

Secondly, furthermore foremost of the raw materials would be thrown away before they are used. Since the time span that are needed raw components to be accomplished to use are longer than greatest storage times allowed, even strawberry flavour for strawberry; 2nd piece and chocolate flavour for sweets; 3rd piece could be eradicated before being completed to use. Much more could raisins for rum and raisin; 5th, lemon sorbet for lemon sorbet; 8th, banana flavour for banana; 9th and tropical fruits for tropical fruits; 10th be.

Finally, the line elongation would result in higher cost through common changing items and lesser amount of production than maximum production in most items. For demonstration, when the distinct item from before one is produced, the output line should be mindfully cleansed up beforehand in alignment to bypass making distinct hue or flavouring pts 1000s from their original ...