You are the CEO of a low tech, high volume, low margin industrial cleaning suppl

Question

You are the CEO of a low tech, high volume, low margin industrial cleaning supplies (chemicals) business. You currently design your own products in house but employ third party manufacturing. You also utilize third party logistics to warehouse and distribute your products. You have numerous but small competitors. Many manufacture/distribute their own products. Your entire market base is located in the Mid West of the United States. You plan is to expand into the rest of the United States and possibly Canada and Mexcio (currently no competition). Using the information found in chapter 6 what would you do to drive growth while not compromising margins?

Explanation / Answer

I WOULD SET UP A MANUFACTURING UNIT AND MANUFACTURE THE PRODUCT IN THE COMPANY ITSELF AND EVEN WOULD HAVE COMPANY'S OWN WAREHOUSE ANDC LOGISTCS FACILITIES INSTED OF OUTSOUCING THEM.

WOULD ALSO SET UP DISTRIBUTION UNITS IN CANADA AND MEXICO EVEN TO EXPAND MY SALES THERE EVEN.

AND WOULD ALSO USE OPTIMUM PRODUCTION TECHNIQUES IN MANUFACTURING THE PRODUCT IN ORDER TO REDUCE ITS PER UNIT COST.

U MAY ADD THIS POINT AS THE CEO I WOULD INCREASE THE PRODUCTION QUANTITY AND LET THE COMPANY ENJOY THE BENEFITS OF ECONOMIES OF SCALE.FURTHER I WOULD CREATE NEW MARKETS FAR DISPOSING OFF i.e. SELLING OFF THE INCREASED PRODUCTION.

I MAY ALSO SET UP A RESEARCH AND DEVELOPMENT DEPARTMENT SO THAT NEW , INNOVATIVE AND EFFECTIVE PRODUCTIONS COULD BE DISCOVERED THAT MAY REDUCE THE COST OF PRODUCTION.

I WOULD USE MODERN DISTRIBUTION TECHNIQUES LIKE PROMISING ON THE GUARANTEE OF THE QUQLITY OF THE PRODUCT SUUPLIED.

I WOULD ALSO CREATE SEPARATE DEPARTMENTAL HEADS SUCH AS PROUCTION HEAD,ADMINISTRATIVE HEAD,MARKETING HEAD.R&D HEAD, HUMAN RESOURCE HEAD AND CALL FOR PERIODIC MEETINGS OF THESE DEPATMENTAL HEADS SO THAT PROBLEMS IF ANY COULD BR SOLVED AND WOULD SMOOTHEN THE FUNCTIONING OF THE COMPANY.

I WOULD ALSO EMPLOY BETTER QUQLITY OF HUMAN RESOURCE SO THAT QUALITY OUTPUT CAN BE PROVIDED AT A RELATIVELY CHEAPER COST.

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