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Allentown Materials Corporation

Team: N.R. Narayanamurthy

Members: Ranjani
Venkataramanan
Mohan
Berny
Agenda

SWOT Analysis
Negative Factors
Success Factors
Manufacturing In Brief
Product Development In Brief
Marketing & Sales In Brief
Road Map
SWOT Analysis

STRENGTH WEAKNESS
Market leader Lack of co-ordination
High innovations Wrong person for the wrong job
Good technical skills Lack off understand the customer
needs
Strong R&D and manufacturing
Poor marketing and sales
10% growth per year
SWOT analysis

Opportunity
Commercial market increasing
Use innovations ideas to produce at low cost

Threats
Increase in competition
Consumers are more price sensitive
Negative Factors

Lack of coordination
Objectives and goals are not clear
Product growth decline
Innovations are not unique
Cost was reduced still gross margin is decline
Informal system for comparing plant performance
They found lack of forecasting marketing trend
Roger doesnt want to take risk
Success Factors

For competitors substantial capital investment, patents,


technological need huge investments this make Allentown
to shine
Allentown was strong in financial and profit positions
Allen town is market leader in glasses and ceramic
Manufacturing

High volume in 3 plants


Were held responsible for gross margin and were profit
centers
Informal system for comparing plant performance
Last 2 years volume shrunk for price cuts
Even cost reduced - But gross margin still declined
Need direction and low cost resistors
No operational objectives
Sales focused on volume no concern about margin
Manufacturing (Continued)

Sales will sell for anything and plant wont buy for until 40%
Marketing failed to provide direction for profitable growth
No low cost product
Product development

Need more marketing and sales people involvement


Problem with technical department
Meetings happen once in 28 days to develop new product
Don Rogers conducts meeting Things are changing with
his involvement
They took 7 years to develop a glass K product
Marketing

Marketing felt lack of cooperation from manufacturing


Manufacturing is unwilling to take risk
Marketing feels distracted to spend inordinate time in plant
Other department informally convey that marketing is doing
lousy job
Sales

They have good relationship with customers


No co-ordination between sales and marketing
No fixed process for forecasting the sales
Sales had requested quick delivery to customer needs but
plant rejected the short notice without upsetting operations
Looking forward

Appointing right persons for right job with right skills eg. marketing
Separate manager for each department (more focus)
To Set Clear objectives and goals
Sales must be done based on incentives
Innovate, effective and low cost products
Formal system for comparing plant performance
Need coordination among departments the System must change
All department meeting must be held every month
R&D innovation must be based on customer needs
R&D and technology is good They can diversify into other segments
Industry is mature so they can acquire