factory expansion project case study

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A case study of production expansion planning in a soft-drink manufacturing company

1988, Omega

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Directions: Read through the case study "Factory Expansion Project"...

Directions: Read through the case study "Factory Expansion Project"...

Directions: Read through the case study "Factory Expansion Project" on pages 318-320 in your textbook and answer the questions below.

• What should Andy Gibson have done differently in his meeting with Jacob Clemson in Jacob's office?
• What are some things Andy could have done differently in his initial contact with Jacob and during the project?
• What are some things Jacob could have done differently from the time he met Andy Gibson initially and during the project?
• What should Gerri do?

Answer & Explanation

The case study "Factory Expansion Project" 

1. What should Andy Gibson have done differently in his meeting with Jacob Clemson in Jacob's office?

Andy Gibson's behavior during his meeting with Jacob Clemson was highly unprofessional and inappropriate. There are several things he should have done differently:

Firstly, Andy should have respected Jacob's time and scheduled an appointment instead of barging into his office unannounced. This lack of courtesy sets a negative tone from the beginning and shows a disregard for Jacob's schedule and priorities.

Secondly, Andy should have allowed Jacob to speak and express any concerns or feedback he had about the project. Interrupting Jacob and cutting him off during their conversation demonstrates a lack of respect and undermines effective communication.

Furthermore, Andy's language and demeanor were disrespectful and unprofessional. Referring to himself as an "SOB" and using vulgar language in a business setting is completely inappropriate and reflects poorly on AG Contractors. Instead, Andy should have maintained a professional and respectful tone throughout the meeting.

Additionally, Andy should have addressed any concerns or issues Jacob raised about the project instead of brushing them off. By dismissing Jacob's concerns and not allowing him to voice his thoughts, Andy failed to foster a collaborative and transparent relationship with the client.

Overall, Andy should have approached the meeting with professionalism, respect, and a willingness to listen to Jacob's perspective. By doing so, he could have built a stronger rapport with the client and addressed any issues or concerns in a constructive manner.

2. What are some things Andy could have done differently in his initial contact with Jacob and during the project?

Andy's approach to his initial contact with Jacob and throughout the project lacked professionalism and integrity. Here are some things he could have done differently:

In his initial contact with Jacob, Andy should have been transparent about the project timeline and costs instead of intentionally deceiving him. By falsely claiming that the project would take 15 months instead of 12 and pressuring Jacob into agreeing to a bonus payment, Andy undermined trust and integrity in the client-contractor relationship.

During the project, Andy should have prioritized effective communication and collaboration with Jacob. Instead of ignoring Jacob's calls and failing to keep him informed about the project's progress, Andy should have provided regular updates and addressed any concerns or issues in a timely manner.

Furthermore, Andy should have been proactive in seeking feedback and input from Jacob throughout the project. By actively involving the client in the decision-making process and considering their needs and preferences, Andy could have ensured a more successful outcome for the project.

Overall, Andy could have demonstrated greater professionalism, transparency, and accountability in his interactions with Jacob both during the initial contact and throughout the project.

3. What are some things Jacob could have done differently from the time he met Andy Gibson initially and during the project?

Jacob's approach to his interactions with Andy and the management of the project could have been improved in several ways:

Firstly, Jacob should have taken more time to thoroughly evaluate and research potential contractors before making a decision. Rushing into a contract with AG Contractors without seeking multiple bids or conducting due diligence increased the risk of encountering issues later on.

Additionally, Jacob should have been more assertive in setting expectations and communicating his needs to Andy from the outset. Clearly outlining project requirements, timelines, and communication protocols could have helped prevent misunderstandings and miscommunications later on.

Moreover, Jacob should have been more proactive in monitoring the progress of the project and addressing any issues or concerns as they arose. By staying actively engaged and involved in the project management process, Jacob could have identified potential problems earlier and taken steps to mitigate them.

Overall, Jacob could have benefited from a more strategic and proactive approach to managing the project and collaborating with the contractor.

4. What should Gerri do?

Gerri, as a recently hired project manager for AG Contractors, finds herself in a difficult position given Andy's unethical behavior and disregard for professionalism. Here are some steps Gerri could consider taking:

Firstly, Gerri should assess her own values and ethics and determine whether she is comfortable continuing to work for a company that condones such behavior. If Gerri finds that her principles conflict with the actions of AG Contractors, she may need to consider seeking employment elsewhere.

If Gerri decides to stay with AG Contractors, she should document any instances of unethical behavior or misconduct she observes, including Andy's actions during the meeting with Jacob. This documentation may be useful for future reference or in the event that Gerri needs to escalate the situation within the company. Gerri should also consider discussing her concerns with Andy directly, expressing her discomfort with his behavior and its potential consequences for the company's reputation and client relationships. While confronting Andy may be challenging, it is important for Gerri to advocate for ethical conduct and professional standards within the organization.

Additionally, Gerri could reach out to Jacob to apologize for Andy's behavior and reassure him that AG Contractors values their relationship and is committed to addressing any concerns he may have. Building trust and rapport with clients is essential for maintaining positive business relationships and securing future projects.

Overall, Gerri must carefully consider her options and prioritize her own integrity and values in navigating this challenging situation. Whether she chooses to stay with AG Contractors or seek opportunities elsewhere, Gerri should strive to uphold professional standards and ethical conduct in all her interactions.

Andy Gibson's conduct during the meeting with Jacob Clemson was highly unprofessional and inappropriate, reflecting a lack of respect and professionalism. Here's a more detailed exploration of what Andy could have done differently:

Respecting Jacob's Time and Space: One of the primary issues with Andy's approach was his failure to schedule an appointment and instead barging into Jacob's office unannounced. This lack of consideration for Jacob's time and schedule set a negative tone for the meeting from the beginning. Andy should have respected Jacob's boundaries and requested a formal meeting time.

Active Listening and Respectful Communication: During the meeting, Andy repeatedly interrupted Jacob and disregarded his attempts to speak. Active listening is a crucial aspect of effective communication, and Andy's failure to listen to Jacob's concerns or feedback demonstrated a lack of respect. Instead, Andy should have allowed Jacob to express himself fully and responded with empathy and understanding.

Maintaining Professionalism: Andy's use of vulgar language and inappropriate behavior further exacerbated the situation. Referring to himself as an "SOB" and using unprofessional language reflects poorly on AG Contractors and damages the professional relationship with Jacob. Andy should have maintained a calm and respectful demeanor throughout the meeting, refraining from using offensive language or behavior.

Addressing Jacob's Concerns: Another crucial aspect Andy neglected was addressing any concerns or issues Jacob raised about the project. Instead of dismissing Jacob's concerns or brushing them off, Andy should have taken the time to listen attentively and provide meaningful responses. Building trust and rapport with clients requires addressing their concerns and demonstrating a commitment to their satisfaction.

Providing Transparency and Information: Lastly, Andy should have provided Jacob with transparent and accurate information about the project's progress and status. Keeping clients informed and updated is essential for maintaining trust and confidence in the contractor-client relationship. Andy's failure to provide timely updates or address Jacob's inquiries contributed to the breakdown in communication and trust.

In summary, Andy Gibson could have significantly improved his meeting with Jacob Clemson by respecting Jacob's time and space, actively listening and communicating respectfully, maintaining professionalism, addressing Jacob's concerns, and providing transparency and information.

2. What are some things Andy could have done differently from his initial contact with Mr. Clemson and during the project?

Andy Gibson's approach to his initial contact with Jacob Clemson and throughout the project lacked professionalism, transparency, and integrity. Here's a more detailed exploration of what Andy could have done differently:

Honesty and Transparency: From the outset, Andy should have been honest and transparent with Jacob about the project's timeline, costs, and requirements. Instead of intentionally deceiving Jacob about the project duration and pressuring him into agreeing to a bonus payment, Andy should have provided accurate information and allowed Jacob to make an informed decision.

Effective Communication: Throughout the project, Andy's communication with Jacob was lacking. Ignoring Jacob's calls, failing to provide updates, and not addressing Jacob's concerns in a timely manner contributed to the breakdown in communication and trust. Andy should have prioritized effective communication by keeping Jacob informed, addressing his inquiries promptly, and providing regular updates on the project's progress.

Professionalism and Integrity: Andy's behavior and language during interactions with Jacob were highly unprofessional and inappropriate. Using vulgar language, disrespecting Jacob's time, and failing to listen to his concerns undermined the professional relationship between AG Contractors and Jacob. Andy should have conducted himself with professionalism, integrity, and respect at all times, regardless of the circumstances.

Client Collaboration and Feedback: Another area where Andy could have improved is in collaborating with Jacob and seeking his input throughout the project. By actively involving Jacob in the decision-making process and considering his feedback and preferences, Andy could have ensured a more successful outcome for the project. Building a collaborative relationship with clients is essential for fostering trust and satisfaction.

Project Management and Accountability: Lastly, Andy should have taken more responsibility for the project's management and accountability. Proactively addressing issues, mitigating risks, and ensuring the project stayed on track are essential responsibilities of a contractor. Andy's failure to effectively manage the project contributed to delays, cost overruns, and dissatisfaction from the client.

In summary, Andy Gibson could have improved his approach to the initial contact with Jacob Clemson and throughout the project by prioritizing honesty and transparency, effective communication, professionalism and integrity, client collaboration and feedback, and project management and accountability.

Jacob Clemson's approach to his interactions with Andy Gibson and the management of the project could have been improved in several ways. Here's a more detailed exploration of what Jacob could have done differently:

Thorough Evaluation and Due Diligence: Before entering into a contract with AG Contractors, Jacob should have taken more time to thoroughly evaluate and research potential contractors. Seeking multiple bids, conducting background checks, and reviewing past client testimonials could have helped Jacob make a more informed decision about hiring AG Contractors.

Clear Expectations and Communication: From the outset, Jacob should have been clear and assertive in setting expectations and communicating his needs to Andy. Clearly outlining project requirements, timelines, and communication protocols would have helped prevent misunderstandings and miscommunications later on. Effective communication is essential for successful project management and client-contractor relationships.

Active Project Management: Throughout the project, Jacob should have taken a more proactive approach to monitoring progress and addressing any issues or concerns as they arose. Staying actively engaged and involved in the project management process would have allowed Jacob to identify potential problems earlier and take steps to mitigate them. Effective project management requires active oversight and accountability from the client.

Assertiveness and Advocacy: Additionally, Jacob should have been more assertive in advocating for his interests and pushing back against any unethical or inappropriate behavior from Andy or AG Contractors. If Jacob had concerns or reservations about the project, he should have voiced them clearly and taken steps to address them. Assertiveness and advocacy are essential skills for protecting one's interests and ensuring a successful outcome.

Contract Management and Oversight: Finally, Jacob should have maintained careful oversight of the contract and project deliverables, ensuring that AG Contractors fulfilled their obligations according to the agreed-upon terms. If there were deviations or issues with the project, Jacob should have addressed them promptly and sought resolution through appropriate channels. Contract management and oversight are critical aspects of ensuring project success and client satisfaction.

In summary, Jacob Clemson could have improved his approach to interactions with Andy Gibson and the management of the project by prioritizing thorough evaluation and due diligence, clear expectations and communication, active project management, assertiveness and advocacy, and contract management and oversight.

Gerri, as a recently hired project manager for AG Contractors, finds herself in a challenging situation given Andy's unethical behavior and disregard for professionalism. Here's a more detailed exploration of what Gerri should do:

Assess Personal Values and Ethics: Gerri should start by assessing her own values and ethics and determining whether she is comfortable continuing to work for a company that condones such behavior. If Gerri finds that her principles conflict with the actions of AG Contractors, she may need to consider seeking employment elsewhere.

Documentation and Record-Keeping: If Gerri decides to stay with AG Contractors, she should document any instances of unethical behavior or misconduct she observes, including Andy's actions during the meeting with Jacob. This documentation may be useful for future reference or in the event that Gerri needs to escalate the situation within the company.

Confronting Andy: Gerri should consider discussing her concerns with Andy directly, expressing her discomfort with his behavior and its potential consequences for the company's reputation and client relationships. While confronting Andy may be challenging, it is important for Gerri to advocate for ethical conduct and professional standards within the organization.

Apologize to Jacob: Gerri should reach out to Jacob to apologize for Andy's behavior and reassure him that AG Contractors values their relationship and is committed to addressing any concerns he may have. Building trust and rapport with clients is essential for maintaining positive business relationships and securing future projects.

Consider Future Steps: Overall, Gerri must carefully consider her options and prioritize her own integrity and values in navigating this challenging situation. Whether she chooses to stay with AG Contractors or seek opportunities elsewhere, Gerri should strive to uphold professional standards and ethical conduct in all her interactions.

In summary, Gerri should assess her personal values, document any instances of unethical behavior, confront Andy about his actions, apologize to Jacob for any wrongdoing, and consider her future steps carefully. It's essential for Gerri to prioritize her integrity and ethical conduct in navigating this challenging situation.

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Case Study for Investment Analysis: Plant Expansion

CFO.University Category: Investment Analysis

Pat Gray, the Operation Manager at ABC Company, a producer of widgets, has analyzed sales projections for the next several years and has determined the only way production can keep up with sales is to build a new plant. Accordingly, Pat is in the process of preparing a Capital Investment Analysis for presentation to the Executive Team. The company competes in the food processing industry.

Here are the facts:

1. In the year just ended annual sales volume and plant capacity were:

• Sales Volume: 500,000 Units
• Plant Capacity: 600,000 Units

2. Due to actions included in the strategic plan, sales are projected to increase at 20% per year for each of the next 5 years.

3. Capital Spending on a new 650,000 units/year plant will cost:

• $10.00 per unit for Buildings with a 5-year useful life
• $5.00 per unit for Equipment with a 5-year useful life

4. If the project is approved in the next month the plant will be operating at the start of next year.

5. Working capital required for each new unit produced and sold equals:

• $1.00 for receivables per unit sold
• $1.50 for inventory per unit sold
• ($.50) for payables per unit sold

6. Gross Margins are $10.00 per unit on the original and incremental production

7. Operating Costs are $1.50 per unit on the original and incremental production

8. The plant’s Terminal Value after 5 years is estimated to be $1,772,000

9. The company is currently capitalized as follows:

• $20,000,000 Equity with an implied equity rate of return of 20%
• $40,000,000 Debt with an average interest rate of 5.0 % with available additional debt at the same rate for this project.
• The company uses its after-tax cost of debt to calculate its Weighted Average Cost of Capital

10. The company’s marginal tax rate is 25%

Your assignment is to prepare the Capital Investment Analysis for Pat assuming that after 5 years there is no production and no residual value for the new plant. Then write a recommendation on whether to undertake the project or not.

You can access the Capital Investment Request Form here .

To request the completed Case Study Capital Investment Request Form email [email protected] with “Please send me the completed Case Study CIRF”

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Planning factory expansion? Here’s the 6 main pitfalls to look out for…

14 March 2023

Meet Tony… he is the owner of a food manufacturing business experiencing a period of growth, making the step from being a small regional business to a nationally recognised supplier. Tony has a vision to be the leader in his sector, with a world class food manufacturing facility that he can be proud to show his customers.

With the business taking on larger contracts, including supplying supermarkets, Tony needs to expand his manufacturing capacity and upgrade the standard of the production facilities to continue their growth trajectory and future-proof the success of the business.

However, Tony feels extremely out of his depth taking on an expansion project with little to no experience in carrying out a project of this nature. He is concerned that if he manages the project himself, his lack of experience could result in pitfalls which could seriously damage his business’s growth as well as causing the quality of the finished project to go downhill.

There are several unexpected pitfalls which can arise during an expansion project which can cause serious delays in the project schedule, result in spiraling costs, and make your expansion project an extremely stressful experience! A few of these are…

• Lack of knowledge in certification criteria (eg. BRC/SALSA) means production areas aren’t built to spec resulting in lower grade audits which could impact demand.
• Incorrect timescales are assigned to tasks, meaning the programme is completely unrealistic with deadlines not being adhered to. This results in friction between subcontractors and ultimately causes the costs of the project to spiral.
• Lack of project management skills can create friction between teams as there will be a lack of coordination and structure to the project. Health and safety measures and documentation on-site isn’t up to standard which can increase risk of accident and injury.
• Constantly distracted by ongoing business operations. Trying to juggle continuing to grow your business as well as manage contractors on-site, chase material orders, keep works on schedule, uphold H&S standards, and keep track of hire equipment on-site to save unnecessary cost can be an extremely stressful experience.
• Using the cheapest subcontractors or general subcontractors with no food industry experience might be a tempting way to cut costs, but this is very likely to lead to poor quality of work and not up to the higher standards required for food production.
• Without a comprehensive design process, details of layout and finishes has to be decided whilst works are happening, often leading to misunderstanding and friction with subcontractors.

These unforeseen challenges can have a direct impact on the success of your expansion project especially if your business is currently going through a major period of growth. They can lead to a production area that’s not up to standards as well as affecting your focus on managing and growing your business.

If, like Tony, you’re planning expansion but recognise these challenges; good news – there is another way!

Get in touch with us today to explore whether our turnkey approach to food factory design, build and fit-out could be the answer you’ve been looking for.

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What does the construction phase of a turnkey project look like.

If you are confident in our turnkey approach and happy with the design, we can then proceed with the building and fitting out of your new food factory according to the detailed design. This enables you to completely step back from the project, allowing you to focus on running and growing your business, knowing it’s in safe hands.

The importance of aligning food certification requirements when planning and designing the build of a new factory facility

If you don’t think turnkey is the correct route for your upcoming expansion project, you will need to bear in mind who will take on the role of principal designer and contractor. This is an important factor as this will expose you to risk including ensuring your new factory facility is built to the requirements of necessary food certifications such as BRC and SALSA.

“I need to expand but I don’t know where to start!” – How our approach transforms your vision into a finished factory facility…

You may know you need to expand your factory facilities due to ongoing business growth but also not know where to start. Due to inexperience or not having enough time you may find the prospect of expansion extremely daunting and overwhelming.

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Do you feel the need to examine some previously written Case Studies on Expansion before you begin writing an own piece? In this open-access catalog of Expansion Case Study examples, you are provided with a thrilling opportunity to examine meaningful topics, content structuring techniques, text flow, formatting styles, and other academically acclaimed writing practices. Exploiting them while crafting your own Expansion Case Study will surely allow you to finalize the piece faster.

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Strategy Case Study Sample

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Free Case Study On Globalization Of Wal-Mart

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Background This paper seeks to examine Yahoo Inc. and give an in-depth analysis into the business financial, market, and general performances on the years 2010 and 2011. It further identifies the strengths, weaknesses, opportunities and threats facing the business in its operations and finally gives recommendations that could induce improvement of the business processes and approaches in a bid to increase its competitiveness, performance and stability in the market. It’s purely an objective compilation based on factual information derived from the company’s annual reports and an analysis of the same in the global market context.

Stakeholders and customer need

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The case is about an automobile parts company which is expanding into Hongkong. The human resource manager is supposed to come up with a staffing solution for his company in order for the global operations to kick off.

The key issues include; an expansion of Banks Industries into a global player, staffing of the offshore operations and a challenge in determination of the best strategy for this expansion from the point of view of the HR Manager. In addition, the plant will start in the next six months.

Good Example Of The Marketing Problems Likely To Be Faced By The Gazelle Are Discussed Below Case Study

International marketing.

- Marketing Problems

Problem Statement Academic Case Studies Example

Executive summary.

This report provides a discussion of the expansion options that are available to Porcini, Inc. as it embarks on the launch of a new restaurant chain called Pronto, which is aimed to provide travelers with quickly prepared meals that are of a higher quality than fast food. With the company lacking in financial resources, they can grow the restaurants either through a franchising or syndication approach. Each approach has its advantages and disadvantages, all of which are discussed in this report. A recommendation is also made as to which option would be more effective for Porcini’s expansion initiatives.

Free Red Bull: Building Brand Equity In Non-Traditional Ways Case Study Sample

Red Bull was established by Dietrich Mateschitz in year 1985. Company introduces energy drink exclusively in Austria in year 1987. After five years of exclusive operation in Austria Market, Company expanded its business in European market. Company decided to slowly enter into foreign markets in order to create buzz and anticipation. This paper intends to analyze brand equity and other related aspects of Red Bull.

Economic And Non-Economic Factors Consideration In Capital Budgeting And Allocation Case Study Examples

Business financial problems:.

Executive Summary _________________________ 3 Brief History _________________________ 5 Statement of the problem _________________________ 6 Conclusion _________________________ 15

Works Cited _________________________ 17

Defining case issues case study sample.

The current issues faced by 122164 Canada Ltd. can be divided into root causes and their symptoms.

Thus, the symptomatic issues are the recent difficulties in Australia and South Korea, as well as the limited commitment of some of the franchisees.

The real problem of the company is the lack of a clear strategic orientation.

Analyzing the case data

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Our analysis of a company listed on US Stock Exchange is based on Starbucks Corporation, while for the purpose of comparison with the competitor within same industry, we shall be analyzing financial statements of Dunkin Donuts.

Strategic Project Portfolio Management Case Study Examples

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With the rising technological advancement and the need for efficiency in operation for any company, there is always a need for the development of a solution to meet these needs. In the case of Catacombs Inc., there are various technological solutions that will need to be implemented to make it competitive, deliver great customer satisfaction and increase its efficiency. This study is going to discuss the requirement, solution and the cost-benefit analysis of the proposed solution.

Requirements Analysis

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This case study describes the most important issue facing Coca-Cola’s ongoing expansion in China in 2014.The most important strategic issue facing Coca Cola's current development is localization of the company. Localization of the company plays a crucial role in its growth China. Localization refers to the adaptation to the needs, preferences and tastes of the Chinese people. Coca-Cola faces a strategic issue in customizing its products to the needs of the local people in China.

Element analysis

Problem statement case studies example, good case study about ecco global value chain management, analysis and discussion 4.

Similarities:.. 4 1. Operations.. 4 2. Distribution System 5

Differences:. 5

1. Outsourcing or own tanneries? 5 2. Management 5

Implications on applied project 6

1. Global Value Chain 6 2. Supply Chain and Distribution Channels 6 3. Risks 6

Conclusion 7

1. Business success of companies going international depends on value chain management. 7 2. In-house production versus outsourcing. 7 3. Outside-in perspective versus inside-out perspective. 7

References 8

Good example of family business case study, free case study on whole foods market, what are strengths and weaknesses of whole foods.

Whole Foods Market inc. has various strengths that continuously stamp its authority as a market leader in retail of natural and organic food items. It also has weaknesses that have made it susceptible to competition and comparative disadvantage in the global market. The company, nevertheless, has taken to its stride to capitalize on its strengths and mitigate on its weaknesses in order to retain its competitive edge in the global market.

Good Case Study On Rest Assured Stores

Purely g8 case study examples.

Recommendations: Purely should focus on developing a consistent brand image by clearly identifying the marketing mix. Commercial users should become the main target market. Promotion expenditures should be kept to minimum to free up capital for capacity expansion.

Short/Medium Term – Immediately to One Month

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Burger King’s core competency may be seen as the ability to effectively manage a brand from a central location which helps to support franchisees in distinguishing the mass customisation strategy (differentiation) (Porter, 2004) from those of Burger King’s key competitors.

The value chain may be seen as composed of a range of activities which are both outsourced and conducted in house through a network of suppliers and franchising agreements (Jones and George, 2011). The most valuable value chain activities of Burger King which are conducted centrally may be seen as those linked to the marketing aspect of the value chain.

Case Study On Brueggers Bagels Bakery Case Study

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