MGT Globalization and the some of the Challenges it presents to Human Resource Management With the proliferation of the internet international Business transactions are more common today than ever. Globalization is now a key factor when creating a business strategy for most companies whether they are small family own businesses or huge corporations. Globalization however does not just involve selling a product in other countries.
How to Write a Summary of an Article? Bridgeton Industries Case The dynamics of the automobile industry have been very volatile in the last few decades, and the case depicts how the changing environment has affected the Bridgestone Industries.
The Bridgestone Industries is a supplier of components and parts for the three main automobile manufacturing companies in the United States. The increase in the fuel prices as well as the technological evolution and the ease of availability of cheaper, cost efficient imported European and Japanese automobiles have taken a significant section of the demand from the US based manufacturers.
In addition to this the increasing costs and overheads in the company are aggravating the cost position of the Bridgestone Industries by decreasing the profit margins per sale. The paper provides an analysis of the cost position of the Bridgestone Industries and the overheads associated with the production lines being manufactured by Bridgestone Industries at the ACF.
A budget is also drafted for the year which considers outsourcing the manifold production line. As a result it is proposed that the Bridgestone Industries should seek to outsource the manifold production line as it can be highly advantageous for the cost position of the company.
Bridgeton Industries Case Overview of Bridgeton Industries The Harvard Business review case depicts the problems that were faced by the Bridgeton Industries due to technological evolution, changes in the internal and external environments of the businesses and the changing consumer preferences for automobiles.
The company Bridgeton Industries is a major supplier of the complements of the parts and components for the United States automotive industry. The automotive component and fabrication plant in question in this case was originally founded in but was acquired by the Bridgeton Industries in the early s.
Since then the plant was used to manufacture complements for the main automotive manufacturers in the region. However increasing costs of manufacturing the components and increasing overhead costs caused the plant to shut down.
The products that were mainly manufactured by the Bridgeton Industries pertained to components of automobiles that were required by the main manufacturers of automobiles in the industry. The main product lines that were manufactured at the automotive component and fabrication plant by the Bridgeton Industries for its customers included fuel tanks for automobiles, stainless steel exhaust manifolds, the front and rear doors of the automobiles, the muffler exhaust systems for the cars as well as the steel oil pans that are incorporated in manufacturing an automobile.
These products were custom made according to the requirements of the customers in the United States market for automobile manufactures only. The target market of the Bridgeton Industries included the three main bid automobile manufactures that operated in the United States.
These automobile manufacturers had a large percentage of the market share of the US automobile market and therefore consumed almost the entire production generated by the automotive component and fabrication plant by Bridgeton Industries.
The case presents that the Bridgeton Industries was a highly successful manufacture of components and the automotive component and fabrication plant churned out components and products under the product lines of fuel tanks, exhaust manifolds, doors, mufflers and exhausts as well as oil plans that were entirely purchased by the three big manufactures of the automobiles in the country.
However with the advent of the Japanese car manufactures in the United States, the company was forced to operate at reduced costs in order to be effici9nt and appeal to the changing markets. Despite the changes that were made to control the costs and stream line operations in the plant, the automotive component and fabrication plant was shut down as it was reporting incrementally increasing overhead levels that could not be contained regardless of the effort put into managing the overheads.
This case analysis how the company fared and what initiatives could have been taken to better manage the overheads to reduce costs and make the automotive component and fabrication plant more cost effective.
Cost Position Evolution The cost position of the company has developed over the time of its operations due to the internal as well as the external factors that include the demand for automobiles and how much the customers are willing to pay for them in the market.
The changing requirements of the customers for cheaper and more affordable cars that provided high mileage increased in the s in the US automobile industry and this impacted the cost bearing capability of the automobile manufacturers.
These manufacturers in turn started purchasing the components at cheaper costs.In the case, Bridgeton made the decision to outsource two divisions in These divisions produced muffler/exhausts and oil pans.
Looking at the model year budgets provided in the case, we can examine the impact that outsourcing these divisions had on costs.1/5(3). Free Essays on Bridgeton Industries Solution Case for students. Use our papers to help you with yours 1 - Bridgeton Case Bridgeton Industries is faced with a difficult decision.
Manifolds have been their most profitable product but based off of their recently developed classifications for products it has fallen to .
Human Resource Management MGT Globalization and the some of the Challenges it presents to Human Resource Management With the proliferation of the internet international Business transactions are more common today than ever.
Bridgeton Industries. The automotive component & Fabrication Plant, ACF, was the original plant site for Bridgeton Industries, a major supplier of components for the domestic automotive schwenkreis.com of the ACF’s production was sold to the Big-Three domestic automobile manufactures.
Bridgeton Industries: Automotive Component and Fabrication Plant 3. Calculate the expected gross margins as a percentage of selling price on each product based on the and model year budgets assuming selling price and material and labor cost do not change from standard.