Fell-Fab Products Essay Sample
1. Situation Audited account
Fell-Fab Products is a maker of interior coverings. which takes 75 % of their entire production and the remainder was based on diverse merchandises for Canadian military. transporting containers. lifts and many other specific merchandises.
Glen Fell. the president of Fell-Fab Products received an offer from North American Airlines ( NAA ) to catch the whole interior coverings direction procedure for their company. NAA would hold several benefits such as decrease of their costs. less “aircrafts on ground” ( AOC ) and possibly better merchandise quality. On the other manus. for Fell-Fab Merchandises it would be a good chance to increase their grosss and net incomes. Everything expressions perfect in statistics. but the other side of this proposal is that Fell-Fab Products does non cognize a batch about running a service operation. Company is concerned because of bad experience with old spouses ; they did non keep cooperation with those companies for really long. In this offer the most of import ground to Mr. Fell’s uncertainty is because of their rawness in this field. and any error and failure could be them money and besides bad repute. Furthermore. Fell-Fab Products’s insides gross revenues would diminish and their just-in-time production procedure would be on a interest. 2. Problem/decision statement
Fell-Fab Products is a niche maker that bases its production on flexibleness with their clients and just-in-time/zero stock lists. Its strength is in holding stable clients that require merchandises for long footings. which they served with high professionalism. On the other side. Fell-Fab Products does non hold any experience in service operations. 3. Alternate designation
After long treatment we discovered that Fell-Fab Products has two other options besides accepting or rejecting the NAA’s offer. First one is to negociate with NAA to go their full inside provider. At the minute they are merely accounted for 35 % of entire NAA’s purchases of aircraft insides. In this instance they will non be responsible for service operations. but for NAA it would be easier to pull off their coverings stock list and quality. Second option is to concentrate more on their existing clients and Increase Company’s apprehensions about industries to which they sell their merchandises. At the minute. company does non understand anything about their partners’ industries. Successful companies ever get familiar with their clients and concerns they operate. As an result Fell-Fab Products will better their repute and addition possibilities for having more offers.
