Conroy Manufacturing Company Case Study Sample

Executive Summary

This paper is comprised of the decision-making and the project appraisal of the company known as The Conroy Manufacturing. The primary operations of Conroy Manufacturing are to develop machinery and small tools that are utilized in the industry. The administration of Conroy Manufacturing is considering either to design their items that contain the capability of innovation which is critically discussed at each step. A viability research is conducted by the management of The Conroy Manufacturing which is described in this study which enables the management of The Conroy Manufacturing to implement their strategic strategy in the production of machinery.

Introduction

This study is primarily based on the decision-making of Conroy Manufacturing in which the management of the company is deciding to give the go-ahead to their proto-type project. This project's feasibility has been assessed based on NPV and the resale value of the property after abandoning the project.

Overview of Facts and Approach

The decision which is based on the production of machinery is primarily held with the management of The Conroy Manufacturing in which the overall decision has to be executed either to produce the component or not. The research related to the market which is also carried out by the company’s management determined that the complete layout of the product provides the outcome of at least 2.5 million dollars (Olson & Berger, 2011). If the overall current management decision of The Conroy Manufacturing to initiate the project is executed, it is forecasted that the overall project will be developed by The Conroy Manufacturing during the timeframe of 2018. The chief engineer of Conroy Manufacturing has forecasted the board of the company will meet the anticipated target and their forecasted target will met at the rate of 75% (Kahn, Kay, Slotegraaf & Uban, 2013).

Furthermore, The Conroy Manufacturing chief engineer forecasted that around 8.5 million dollars would be expensed in the form of research and development expenses related to the prototype which includes the expense related to the expansion fee of worth 2.5 million dollars (Pitts & Sarao, 2006). If the overall projection of the company is not met the management of The Conroy Manufacturing will evaluate and monitor the outcome during 2019 (Galbraith, 2002).

If the administration of the company decides to cease the entire project of the prototype or enable the production of the equipment in the sustainable phase, then the Conroy Manufacturing chief engineer will analyze the amendment of the project proto-type which is unsuccessful and it is analyzed that it overall expense will result in approximately 6.4 million dollars. On the other hand, the amendment would require an extra timeframe to be implemented (Pitts & Sarao, 2006).

The site which is used in the production of the prototype is determined as Campbellfield which is considered a conventional textile mill that has been closed around the timeframe of more than 2 years. The conventional textile mills can be bought out quickly for the sum of 6 million dollars. Furthermore, it has been measured that around 20% of the estimation exists in which the Campbellfield area will be available for a buyout at a similar amount of approximately 5 million dollars (Liou, 2008).

The site of The Campbellfield is considered smaller for the company and this site can meet the lesser production for the Conroy Manufacturing Company which is estimated to be 50,000 laws movers per fiscal year. On the other hand, there are facilities that are associated with warehousing and transportation and the availability of skilled labor which comprises domestic people (Gray & Palmiotti, 2010). The complete project conversion would demand an extra period and would result in an overall expense of 24 million dollars per annum. However, The Conroy Manufacturing Company management would not give the green signal to enter the production phase unless the Conroy Manufacturing Company proto-type has been entered into the production phase successfully. It has been forecasted that during 2023, the Campbellfield site for the production of proto-type would result in an overall value of 16 million dollars, while The Conroy Manufacturing Company factory situated at the Laverton would result in a total worth of 32 million dollars (Bobrow, 1997). In this scenario, the Campbellfield site during the timeframe of disposal excluding the equipment as an outcome of abandoning the project will result in a total value of 6 million dollars. This abandoning of the project will be mainly due to the failure of a prototype. However, the overall expense of the company’s capital is determined to be 10% (Ribbens, 2000).

Statement of Assumption & Decision Tree

The assumption is made that the prototype project of the company is determined as successful (Belz, 2011). According to the decision tree, it has been assumed that overall sixty percent chances support the successful development of a prototype which would generate the profit four-point seventy-five hundred thousand dollars. On the other hand, the unsuccessful development of the prototype will result in the loss of thirty hundred thousand dollars to the company (D WATERS, 2015).

If the prototype is successful, it will result in a small-scale production of thirty-five hundred thousand dollars, where it is seventy-five percent probable that the company will generate higher sales which it would result in a revenue of forty hundred thousand dollars. On the other hand, the low sales of the company will generate a lesser profit of twenty hundred thousand dollars (D WATERS, 2015).

Application of Smart Decision

It has been computed that the total NPV which has been generated from option one results in an overall NPV of $24,793,648. However, the NPV of the second option results in an overall NPV of $19,484,955. On the other hand, the total cash flow that has been generated from options one and two are three point three billion dollars and two point five billion dollars respectively.

Recommendation

It can be recommended to the management of The Conroy Manufacturing Company to accept option one of a prototype as it generates higher NPV in comparison to option two.

SMART Analysis

Smart analysis involves the foundation of particular, quantifiable, achievable, sensible, and time-targeted analysis. The application of SMART analysis in the case of Conroy Manufacturing Company is based on evaluating the feasibility and viability of the project which is based on the profitability of the lawn mover during the period of 5 years i.e. 2015-2020. Therefore, for the management of the company to determine the objective of SMART, they first have to determine their overall desired profitability which has to be achieved by the lawn mover. In this way, the management of the company will be able to set its SMART objective.

The site of The Campbellfield is considered smaller for the company and this site can meet the lesser production for the Conroy Manufacturing Company which is estimated to be 50,000 laws movers per fiscal year. On the other hand, some facilities are associated with warehousing and transportation and the availability of skilled labor which comprises domestic people (Gray & Palmiotti, 2010). The complete project conversion would demand an extra period and would result in an overall expense of 24 million dollars per annum. However, The Conroy Manufacturing Company management would not give the green signal to enter the production phase unless the Conroy Manufacturing Company proto-type has been entered into the production phase successfully.

The Conroy Manufacturing chief engineer forecasted that around 8.5 million dollars will be expensed out in the form of research and development expense related to the prototype which includes the expense related to the expansion fee of worth 2.5 million dollars (Pitts & Sarao, 2006). If the overall projection of the company is not met the management of The Conroy Manufacturing will evaluate and monitor the outcome during 2019. The Conroy Manufacturing Company expected an 80 percent opportunity that individuals would respond hopefully to The Conroy Manufacturing Company’s responsiveness making deals increase over contenders who moved slower. If the report is apathetic and a review is issued, The Conroy Manufacturing Company Products predicted a 25 percent likelihood that it could ensure existing deals with the assistance of a proactive reaction.

The site of The Campbellfield is considered as smaller for the company and this site can meet the lesser production for the Conroy Manufacturing Company which is estimated to be 50,000 laws movers per fiscal year. On the other hand, some facilities are associated with warehousing and transportation and the availability of skilled labor which comprises domestic people. The complete project conversion would demand an extra period and would result in an overall expense of 24 million dollars per annum. However, The Conroy Manufacturing Company management would not give the green signal to enter the production phase unless the Conroy Manufacturing Company proto-type has been entered into the production phase successfully.

Recommendation

It can be recommended to the management of The Conroy Manufacturing Company to accept the Leverington site proposal as it generates higher NPV in comparison to option two.

Strength

Why the Conroy Manufacturing Company turned into the second biggest endeavor. This is because the characteristics of The Conroy Manufacturing Company are the point at which the buyer requires a colossal aggregate measure of things, the Conroy Manufacturing Company can supply and cover the measure of the things (MITAL, 2017). This is by a segment of the spots and stores are a nonattendance of things (Belloc, 1967). Regardless, The Conroy Manufacturing Company additionally can supply enough measure of things to a buyer. Likewise, The Conroy Manufacturing Company of the business stream is enormous, so they can keep the nonappearance of things happening. Then again, the other quality of the organization incorporates a Strong Cash stream which empowers the organization to maintain its business movement smoother, a Strong arrangement of the brand, and a Successful history of assembling new things (Kasten, 1986).

Weakness

The restriction of the Conroy Manufacturing Company is That Conroy Manufacturing Company got enough financing to build up their hotel and resort, in any case, the way isn't adequate to place to an expansion the building and while developing the building, will impact nature near the tenants (Kahn, Kay, Slotegraaf and Uban, 2013). By and by the land is let various landholders pushed up the land esteem, so every one of the landholders holds the lease and dun need the pitch to other. This is the way that The Conroy Manufacturing Company faces the constraint. Then again, the confinement of an organization incorporates, new advancements of the organization requires greater speculation Companies have a higher rate of whittling down on their human asset (Belloc, 1967).

Recommendation

The general financial position of The Conroy Manufacturing Company is resolved to be extremely poor where its destinations are being expanded over the time of its business activities. Then again, the gross net revenue of the organization is being diminished by 2.24% which demonstrates that The Conroy Manufacturing Company has set inadequate controls to deal with its cost of merchandise sold. Besides, the liquidity proportion of the organization demonstrates an exceptionally poor position which shows that The Conroy Manufacturing Company may confront a danger of insolvency in the future.

The Conroy Manufacturing Company required that its marketing strategy focus on localized markets even though its products may be standardized globally. Another channel for better reaching out to diverse International markets is by directly marketing to them rather than a bare translation of large ad campaigns. A string of 15-second YouTube ads titled 'One Night' which display different cities across the world through iPhone cameras shows that The Conroy Manufacturing Company has somehow already started this process through these recent changes at the external ad agency.

The Conroy Manufacturing Company has required justification for globalization. However, certainly, it is not easy for Apply to cater to every emerging market globally. The Conroy Manufacturing Company's car seems to be the next in their innovation lineup. The Conroy Manufacturing Company needs to learn lessons from the present day Global markets and cultural situations while taking into notice the collapses of their past endeavors to manufacture a global car.

The discussed recommendations are based on the understanding that The Conroy Manufacturing Company is engaged in the application of strategies, for instance, the employment of the latest thinking with influential outcomes and standardized products. By initiating these strategies will not only allow The Conroy Manufacturing Company to move forward on a global level through strategic innovations but also overcome the hurdles of political, economic, and cultural roadblocks that they have faced in the past. This smart analysis was a compelling procedure for me in making processes by methods for guaranteeing that members in a gathering with a common analysis. This analysis helped The Conroy Manufacturing Company's vocation by working towards The Conroy Manufacturing Company's particular targets that incorporated the profession-based analysis for me. This analysis setting was additionally the real part of self-improvement and it set up the positive connection between identified analysis and execution in the association. Hence smart analysis can help to accomplish The Conroy Manufacturing Company project analysis in the association.

Conclusion

The general model of The Conroy Manufacturing Company is agreeable. The perspective of locales that The Conroy Manufacturing Company holds unsecured destinations brings about a more unfriendly model rating. In any case, The Conroy Manufacturing Company AAA+ BCA decides the Conroy Manufacturing Company's solid business tasks in the United Kingdom. The Conroy Manufacturing Company model rating likewise decides the hazard related to its benefit, expanded use, and liquidity proportion which decides the general position of the organization which is dissected to be most noticeably bad when contrasted with the past period under pattern examination.

This element will lead to a couple of problems which is associated with the business operations of The Conroy Manufacturing Company in the future period to optimize their revenues and sustain their current rating of proto-type in comparison to their rivals. Various recommendations are made to The Conroy Manufacturing Company management which are the result of their previous statistics based on their existing standard international strategy which restless to the practice of innovation, awareness of culture, and globalization, thus not only from the view of the corporation but also from the view of stakeholders. The management of The Conroy Manufacturing Company should evaluate the international operations of the company which can be determined as innovation and must not only place their primary aim on the domestic operations but the management of The Conroy Manufacturing Company should focus on the international business strategy.

It can be concluded that the overall strategy of The Conroy Manufacturing Company Incorporation is quite attractive as compared to another overall strategy of Company Incorporation. The sales strategy of The Conroy Manufacturing Company is based on capturing niche marketing through their hostile sales approach. This approach leads the management to get a higher market share in the electronic market. Various strategies contribute significantly to the successful and rapid development of both The Conroy Manufacturing Company and Company products in the market. Therefore, both of the companies cannot ignore the influencing element of strategies on their corporate objective. The Campbellfield site is determined as smaller for The Conroy Manufacturing Company and could meet the small production which is estimated at fifty thousand lawn movers per annum. Furthermore, there are transportation and warehousing facilities and skilled labor availability which is based on local individuals. The overall conversion of a project would require an extra fiscal year and would cost approximately twenty-four million dollars, however, the management of The Conroy Manufacturing Company would not give the go-ahead to enter into the phase of production if the prototype is successfully launched. However, it is quite complicated for the Company to capture the market share in the industry with their current strategy as a various new manufacturer has entered into the electronic market offering the same product with a similar feature.

On the other hand, The Conroy Manufacturing Company's sales strategy is only affected by its mobile features as it provides customers with a unique experience. Therefore, by developing a unique feature in their products the management of The Conroy Manufacturing Company Incorporation can cope with the demand of the market, and achieve sustainable and strategic development. The Conroy Manufacturing Company items additionally utilized hazard tradeoffs in chance administration. They focused on the hazard correspondence with an accentuation on sustenance well-being and chemicals in the earth. Their interests include the logical premise of human well-being hazard estimation, the use of hazard estimation to project decisions, and hazard tradeoffs in chance administration. The idea of exchange-offs applies to all project decision-making at each level. It isn't restricted to simply financial matters, aside from the way that the modification of financial aspects in its broadest definition includes all project decision-making. Lastly, various strategies have been utilized to determine the overall industry and segment in which The Conroy Manufacturing Company Incorporation and Company operates. However, it is analyzed that there is a higher capital required to enter into this market, but there are various issues which can lead to a decline in sales including the low switching cost and competition in the electronic market.

References

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Belz, A. (2011). Product development. New York: McGraw-Hill.

Belloc, H. (1967). On. Freeport, N.Y.: Books for Libraries Press.

D WATERS, M. (2015). PROTOTYPE. [S.l.]: PAN BOOKS.

https://www.lucidchart.com/pages/decision-tree/

Galbraith, C. (2002). Product development. [Christchurch, N.Z.: Resource Education Base].

Gray, J., & Palmiotti, J. (2010). Prototype. London: Titan.

Kahn, K., Kay, S., Slotegraaf, R., & Uban, S. (2013). The PDMA handbook of new product development. Hoboken, N.J.: Wiley.

Kahn, K., Kay, S., Slotegraaf, R., & Uban, S. (2013). The PDMA handbook of new product development 2. Hoboken, N.J.: Wiley.

Kasten, S. (1986). Electronic prototype construction. Indianapolis, Ind.: Howard W. Sams.

Liou, F. (2008). Rapid prototyping and engineering applications. Boca Raton: CRC Press.

MITAL, A. (2017). PRODUCT DEVELOPMENT. [S.l.]: ELSEVIER.

Olson, S., & Berger, A. (2011). Establishing Precompetitive Collaborations to Stimulate Genomics-Driven Product Development. Washington, D.C.: National Academies Press.

Pitts, B., & Sarao, M. (2006). Inventing on a shoestring budget!Dallas, Tex.: Second Sight Pub.

Ribbens, J. (2000). Simultaneous engineering for new product development. New York, NY [u.a.]: Wiley.

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