Bridgeton industries case study solution essays

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. We assumed for the purpose of our analysis, that the reductions in DL and DM for these two year are comparable.

The recession of the s also further reduced the disposal income and the propensity to save for the people in the United States which made purchasing the imported European and Japanese models of automobiles much more attractive to the consumers instead of opting for those models manufactured by the big three US automobile manufacturers.

The overhead percentage was calculated at the budget time and used throughout the model year to allocate overhead to products using a single overhead pool. 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.

As the internet brings the world closer together it becomes far more likely that a business that opened with no intention of selling internationally will have customers form different parts of the world asking for their product.

The Bridgestone Industries is a supplier of components and parts for the three main automobile manufacturing companies in the United States.

Assume also that if manifolds are produced, their selling prices, volume, material, and direct labor costs will not change. Changes to cost structure As we mentioned previously Bridgeton currently uses a single overhead pool for the entire plant that allocates costs based on direct labor hours.

The recession of the s also further reduced the disposal income and the propensity to save for the people in the United States which made purchasing the imported European and Japanese models of automobiles much more attractive to the consumers instead of opting for those models manufactured by the big three US automobile manufacturers.

Birdgeton Case

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. Once production lines are outsourced, the remaining fixed costs in OH which are not outsourced represent the excess capacity.

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If Bridgeton industries wants to seriously considering outsourcing the manifold line or any other some significant overhead restructuring is necessary to try and reduce the fixed cost profitability dilution.

The product costs used for the strategic analysis were appropriate.

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As a result the consumers started to look for cheaper alternatives of travel and those which were more environmental friendly that the vehicles manufactured by the big three US automobile manufacturers.

We have created two estimated model year budgets: Because a global culture does not exist, any search for it would be futile.

Supplies and small tools should only be purchased as need and overtime hours should be kept to a minimum. While one product line may be diligently working to reduce costs, another product line can simply reduce production and receive the same relative decrease in overhead costs. 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.

Having an effective Human Resource Management team that effectively analyze your company's current and future personnel needs is key in any business organization. The legal aspects are fairly simple because in most places the laws are spelled out.

A budget is also drafted for the year which considers outsourcing the manifold production line. Also, the overhead percentage is calculated only once a year at budget time and is used throughout the entire model year.

Bridgeton Industries Case

We will begin with some of the assumptions of our analysis, and the conclusions from our various analyses of Bridgeton Industries Costs.Bridgeton industries Automotive Component and Fabrication Plant Analysis Bridgeton's Cost System So, what was happening??

Timeline Getting to know. Bridgeton Industries Solution Case Essays and Term Papers Search Results for 'bridgeton industries solution case' Mobilization Of Domestic Savings For Economic Growth And Development In The Banking Industry.

Bridgeton Industries Case Study The Automotive Component and Fabrication Plant (ACF) is part of Bridgeton Industries.

Bridgeton Industries Case

They supplied components to the Big-Three domestic automobile plants. During the ’s ACF experienced cutbacks due to foreign competition. 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 kaleiseminari.com of the ACF’s production was sold to the Big-Three domestic automobile manufactures.

Questions for Discussion Q1. What is the competitive environment for Bridgeton? A1 Q2. How has Bridgeton reacted to the competive environment? A2 Q3. What did the outside consultants (strategic analysis) recommend?

Bridgeton Case Essay

A3 Q4. What is the structure of Bridgeton's cost system? A4 Q5. Calculate the. 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.

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