This website uses cookies to ensure you have the best experience. Learn more

Dominion Motors Essay

683 words - 3 pages

Dominion Motor & Controls, Limited (1980)
Problem/issue: DMC’s potential loss of significant market share in the near and long term if DMC doesn’t respond quickly and effectively to the report concluding from the tests performed by the Hamilton Oil Company.
Evaluation of alternatives available:
1) Alternative 1 (short term) -
a) Dominion produces a motor which is very expensive, it costs more than the others in terms of energy and it is leads to over-motoring practice; this means that the product is not convenient for the purchasers.
b) The only way to sell these motors again is to cut their prices at the same level of the 7.5-hp; because companies don’t care about little savings on energy in the short period, and because the torque of the 10-hp is higher than the 7.5-hp’s. That makes these motors still convenient in the short term.
c) Although the margin will be reduced the sales volume would grow, also considering that this period is the ...view middle of the document...

3) Alternative 3 (Long term) –
a) This alternative represents the only way to produce exactly what market needs. This solution has the energy costs of a 5-hp motor with the performances of a 10-hp, and could be priced below the 7.5-hp motor.
b) But thanks to its attractiveness could be priced just a little bit more expensive than the 7.5-hp. This motor would still exceed NEMA specifications.
c) DMC engineers believe this solution will give the company an important first mover advantage over its competitors, which is expected to last for a long time. The high profit margin can allow the company to improve the advertisement investments.
d) The basic problem of this alternative is that it is not realizable before 4 or 5 months.
4) Alternative 4 –
a) Many DMC managers believe that Bridge’s conclusions aren’t completely accurate and they should attempt to persuade him that another set of conclusions could be drawn from the test results.
b) The problem with approaching Bridge directly to alter his recommendations is that it may generate ill will.
Long term- Give the market exactly what it needs: 5-hp motor with the starting torque of a 10hp unit. By doing necessary calculation it is clear that the best profit margins can be achieved by alternative 3. By choosing this alternative, the company’s market share should increase to 60% according to the optimistic forecasting. In the next five years 5,000 new wells will enter production and if the new well pumping motor requirements will be the same as for existing fields, the company could sell up to 3,000 motors thanks to the new wells.
According to our financial analysis, the Break Even Point is achieved selling 188 units, and can be also achieved selling 275 units in case of a new investment in advertising (around $35000). A stronger advertising campaign will be surely useful to promote the new motor.
Considering that the third alternative can be realized in 4 or 5 months, and that the next months are the most profitable, the only way not to lose business in the short term is choosing alternative 1. In fact it produces lower profit margins, but the sales volume will grow and it finally makes our motor convenient for the purchasers.

Other Papers Like Dominion Motors

Holidays In Albania Essay

1636 words - 7 pages Have you ever thought about having exciting and incredibly cheap vacations? Albania might be the right choice. According to My Travel Guide, Albania is ranked the fourth among ten places worth visiting in Eastern Europe (“Top 10 Eastern European Destinations”). One can encounter three kinds of vacations in this Mediterranean country: winter, summer, and cultural. The ideal places to spend your winter vacations are the Albanian Alps. They are

A Heart Of Darkness Essay

1748 words - 7 pages In this short story, there are frequent significant subject and ideas that make the story, "A Heart of Darkness," by Joseph Conrad, and haunting novel. The main theme is absolute white power over the natives. The theme validates the corruption, and the dependence caused by the white people as they took over the Congo. White men were giving all the power; they had no self-control, and in the end they did not use wisely. The white men became

The Aspects Of Vulnerability Among The Exploited In Medical Research

2287 words - 10 pages Essentially, everyone is in some state of vulnerability. However, some of us are more susceptible to harm due to our vulnerabilities. The susceptible are the individuals with the greatest risk. These individuals risk the loss of their autonomy, and maybe even their lives. Vulnerable populations can be found in every subset of society. However, as previously mentioned, there are some vulnerable populations that are at an even greater risk than

The Hitchhiker’S Guide To The Galaxy

1171 words - 5 pages The Hitchhiker’s Guide to the Galaxy As the human race makes life-changing discoveries, it is made apparent that there is always more to learn as the universe, instead of becoming familiar, is becoming absurd. The Hitchhiker’s Guide to the Galaxy, written by Douglas Adams, as well as the 2005 film adaption, portrays absurdity to be an all-encompassing system in the universe. Through the introduction and attempt to understand lack of reason, the

The Ford Motor Company Wage Increase Of 1914 And The Theory Of Incentives And Efficiency Wages

1252 words - 6 pages ‘It’s not the employer who pays the wages. Employers only handle the money. It is the customer who pays the wages’ (Henry Ford, cited in Johnson and Weinstein 2004, p. 2). When the Ford Motor Company announced that it would more than double the wages of its workers in January 1914 to a ‘five-dollar day’ minimum, was this a contradiction to Henry Ford’s statement? If customers are actually the ultimate payers of wages, then more than

Historical Analysis Of The Economical Breakthroughs Of The Industrial Revolution

1396 words - 6 pages A Historical Analysis of the Economical Breakthroughs of the Industrial Revolution During the Industrial Revolution, many elements of society experienced huge breakthroughs that would change the way they functioned forever. Economics were definitely one of them. With many new inventions and many factories appearing, many, many, more resources were being created than ever before. Also, all of the revenue from these resources was being given to

Leadership Portrayed in Monologue from Shakespeare’s Henry V

1214 words - 5 pages Leadership is defined as a socially constructed process and which also affect organizational future outcomes. Leader is someone at high position who have overall duty for an organization, she or he decide what to do and the way how to achieve it. (Carter and Greer, 2013)The role of leader is extremely important for an organization, leader use their own power to influence the followers though many different ways such as motivation in order to

Cuba Civil Rights

1906 words - 8 pages Picture a country that has limits on how much you can make random government imprisonments and more what do you do. That is the situation for the eleven million seventy-five thousand two hundred forty-four people of Cuba since the takeover of Fidel Castro. The US is opposed to Castro taking control of Cuba. Castro managed to ease the United States nerves when he said that Cuba was against all forms of communism. According to Lana Wylie the Union

US Freight System

1273 words - 6 pages General Environment Each American requires the movement of approximately 40 tons of freight per year across the freight network. This includes everything from shirts to lawn mower to orange juice. • As the U.S. population expands, the U.S. freight system will be called upon to meet the demands of a larger population • Between 2010 and 2035, the system will experience a 22 percent increase in the total amount of tonnage it moves • By 2050, with

Democratic Peace Theory

1852 words - 8 pages Intro: US Presidents have made it a goal during their term(s) in office to establish a good relationship with foreign countries and even try to improve upon existing connections with our allies. Some believe it is to prevent conflicts between the countries while others dispute that it is a threat assessment by the United States to pick and choose their friends and enemies. Preventing conflict between two democracies or countries that practice

Booker T. Washington

1621 words - 7 pages “Success is to be measured not so much by the position that one has reached in life as by the obstacles which he has overcome” –Booker T. Washing. Booker Taliaferro Washington was born in Hale’s Ford, Virginia on April 5th, 1856 to Jane Burroughs and an unknown White man. Washington was married three times. His first wife was Fannie N. Smith from Malden, West Virginia. Booker and Fannie were married in the summer of 1882 and had one child

Related Essays

Tat Corus Essay

7708 words - 31 pages first time in India and the first player to start rapid industrialization process. In the later part the concepts invented and implemented by Tata became lawful and compulsory practice for the Indian employees. From Tata Steel, Tata has started investing in various other businesses like; Oil mills, Airlines, Publishing, Motors, Consultancy services etc in a short span of 30 years. In the year 1945 Tata entered into tea business by the name of Tata

Freedom And Responsibility Essay

2141 words - 9 pages Built within the Constitution of the United States are specifically defined freedoms that are guaranteed to all citizens. Conversely, with every constitutional freedom there comes a corresponding responsibility. On September 25, 1789, the state legislature’s twelve proposed amendments were transmitted by congress, the first two dealing with congressional representation and congressional pay. The following numbers three through twelve were

Hate Crime Laws Essay

2348 words - 10 pages On June 7, 1998, 49-year-old James Byrd Jr. of Texas accepted a ride from three white men, who then beat him severely, urinated on him, chained him by his ankles to the back of their pick-up truck, dragged him for three miles into the countryside, and dumped his corpse in front of an African-American cemetery (Graczyk). A little over a year later, a jury sentenced ring leader John King to death by lethal injection (“Man Executed for Dragging

Rational Emotional Behavior Therapy Case Study Conceptualization And Treatment Plan

2140 words - 9 pages Rational Emotional Behavior Therapy Case Study of Sarah: A Conceptualization and Treatment Plan Rational emotive behavior therapy, REBT, was developed by Albert Ellis and holds the central belief that the events in our lives do not cause our disturbances but that they are instead caused by our view of the events (Murdock, 2009). Murdock (2009) states that “people are seen as responsible for their behavior” (p. 279) but, because they are