The costs might be saved from such activities and the cost incurred on this option 3 might be less than other options. Hiring additional staff would be beneficial to the company in the short Foldrite furniture case study, but the probability of this happening is minimal.
It can have an increased number of labor hours, which can be used as per need basis. Inventory This involves increasing the level of inventory over the standard level for some time. The cost of hiring new labor will be high at the initial stage but after that the cost will be normalize and the company will not need to pay overtime costs.
There could be other ways that the company could use instead laying off workers. Much of the working capital will be stuck in the excess inventory maintained. If the demand increases beyond expectation, then new labor can be hired accordingly.
However, the exposure to the company is minimal because an increase in demand would mean it could afford to pay their full time pay. Employee fatigue is inevitable if the company opts to increase overtime hours. As discussed earlier, the new hiring and then laying off after the peak season will impact adversely on Foldrite furniture case study motivation of the other employees which led to less productivity.
The overtime might result in low morale and motivation level, which will result in less productivity. Overtime by the existing workforce One option to meet the increased demand is to make the workers to work overtime specifically on Fridays, a 10 hour shift.
Tight credit will affect the company operations, as it will be unable to meet most of its production. Hiring and firing The company is also considering hiring new labor as per demand and this new hire will be lay off when demand normalize.
Please place the order on the website to get your own originally done case solution Related Case Solutions: This will not be possible with option one, where there will be limited number of overtime hours available. This will result in more cost for the company including borrowing cost, tied up of capital in inventories and increase in carrying cost……………… This is just a sample partial work.
The newly hired employees will be laid off when the demand normalizes. The company will achieve in getting high motivated employees, thus the other option such as hiring and firing might involve the de motivation among the staff as they will feel their job are less secured. Currently, the company has idle production capacity, which the new staff could make use of and increase production while reducing production time.
The overtime labor rate is one and a half of the original labor rates. Chasing the demand- Hiring and Firing The second option that is under consideration is that the company will adopt the strategy to chase the demand and increase or decrease resources as per need.
Therefore, there is no need of changes or interruptions at production and labor level………………… This is just a sample partial work. Having experienced this before, the management of the company is unwilling to lay off workers in order to keep them motivated. However labor might not be demotivated as higher pay may works as a motivating factor.
Therefore, this option will help in negating such issues. The excess inventory will fill up the gap between the production volume and the demanded product volume at peak time.
The exposure of this threat is high because the company would suffer if it does not meet its consumer demand. New workforce will be hired in time of high demand for the product, such as in peak season.
Please place the order on the website to get your own originally done case solution Related Case Solutions: This would ensure that workers do not get demotivated when the temporary staffs are laid off.
Unskilled labor might need four paid weeks training to become skilled. This is because the company has minimal funds, and there are other ways of handling increased demand. There will be extra administrative and recruitment costs for hiring new employees.
Provide assurance to full time workers of their job security. Following options are available: Inform workers of the need to lay off temporary workers. The impact of this risk is high because it has the potential to affect all functional areas of the company.
There is heavy investment cost involved in this option and the company might not be able to utilize the investment since these new labor will be laid off as demand becomes steady.
The company will increase the inventory level for finished goods and this increased level will help it to meet the increased demand in coming months. The expected increase in demand is highly likely to occur, especially because of the outdoor event supplier.Joseph Joy Section 6 Gary Bissonette Foldrite Furniture Case.
Some possible reasons that demand may not materialize in the long term include the European Debt crisis which looks to get worse as time goes on and could have detrimental effects on our international sales in Europe.
this is particularly a problem because in the past marketing has a history of overhyping our products.1/5(2). BUS Case Study Analysis Outline Template - FoldRite Furniture Company Spring Title of Case Author of Case (the person(s) who wrote the case) I.
CASE PROTAGONIST Name, position, and title of protagonist – Jose Ramos, VP of Manufacturing Name of company. Nature of company – FoldRite Furniture Co. Educational and professional background of protagonist.
Case: FoldRite Furniture Co.: Planning to Meet a Surge in Demand Case Characters: Jose Ramos - VP of FoldeRite Furniture Company Martin Kelsey - Production manager Alice Yung - CFO Case facts about FoldeRite Furniture: Established in Throughout s company grew organically.
annual growth rate %%(18). FoldRite Furniture Company Case Solution Moreover, the lead time to make a deliver was reduced to 2 weeks and this helped the company to receive more orders and increases its revenues. In the yeareven the economy was in recession, as the company made.
FoldRite Furniture Company Case Solution. A benefit of such an initiative will be that the company will be able to meet the demand.
It can have an increased number of. View this case study on Foldrite Furniture Case Analysis. During the planned workshop the participants will be provided with an opportunity to share and reflect.Download