ACF should give up or outsource Bridgeton essay products in class 3. Bridgeton Industries Case Overview of Bridgeton Industries The Harvard Business review case depicts the problems that were faced by the Bridgeton Industries due to technological evolution, changes in the internal and external environments of the businesses and the changing consumer preferences for automobiles.
This decreased the appeal of the products being produced at high costs for the customers of the Bridgestone Industries which forced the Bridgestone Industries to reduce shut down the automotive component and fabrication plant as it was continuously depicting increasing costs that reduced the profit margins for the Bridgestone Industries on the products that its sold to the big three automobile manufactures in the Unites States automobile industry.
However increasing costs of manufacturing the components and increasing overhead costs caused the plant to shut down. The automotive component and fabrication plant in question in this case was originally founded in but was acquired Bridgeton essay the Bridgeton Industries in the early s. At the end ofengine plant—one of the ACF plant had to shut down due to the unsustain growth in diesel-powered cars.
Alternatively, one could do a regression analysis, Bridgeton essay on a large r time series of data. The recession of the s also further reduced the disposal income and the propensity to save for the people in the United States which made purchasing the imported European and Japanese models of automobiles much more attractive to the consumers instead of opting for those models manufactured by the big Bridgeton essay US automobile manufacturers.
How would the change in the lot size for flow controller production affect unit costs. Why have these changes occurred. Bridgeton Industries Case Overview of Bridgeton Industries The Harvard Business review case depicts the problems that were faced by the Bridgeton Industries due to technological evolution, changes in the internal and external environments of the businesses and the changing consumer preferences for automobiles.
What will be the overhead allocation rate under the two scenarios. Thus, to determine the level of commercial revenue hours required to break even, the contribution from commercial sales only needs to cover the fixed costs remaining after subtracting the fixed costs already covered by the contribution from intracompany sales.
Aside from this the increasing prices of crude oil in the international market in the s also significantly changed the demand of the automobiles as depicted by the consumers.
Would you recommend any changes to the system you prefer. The case presents that the Bridgeton Industries was a highly successful manufacture of components and the automotive component and fabrication plant churned out components and products under the product lines of fuel tanks, exhaust manifolds, doors, mufflers and exhausts as well as oil plans that were entirely purchased by the three big manufactures of the automobiles in the country.
However with the advent of the Japanese car manufactures in the United States, the company was forced to operate at reduced costs in order to be effici9nt and appeal to the changing markets.
If the ratio is relatively constant over time, the corresponding OH cost is largely variable. So unless Bridgeton can reduce their overall overhead costs significantly and in particular reduce the overhead cost for Manifolds, they should outsource the manifolds production.
InBridgeton Industries employed a strategic consulting company. In this case, the direct costs seem to be largely variable i.
How critical are these assumptions to your conclusions. How useful was the data in Exhibit 4 for the purpose of this analysis. This strategy was focused on reducing the cost in order to increase the margin on the sales made to the big three automobile manufacturers in the market for increased profitability to sustain operations of the Bridgeton Industries The Bridgeton Industries underwent significant changes and evolution in its cost positions.
How attractive is the investment as measured by various capital budgeting techniques i. Bridgeton Industries Case Overview of Bridgeton Industries The Harvard Business review case depicts the problems that were faced by the Bridgeton Industries due to technological evolution, changes in the internal and external environments of the businesses and the changing consumer preferences for automobiles.
How much overhead cost do you think Bridgeton and the consultants implicitly assumed would be saved by outsourcing muffler-exhaust systems and oil pans? They expect all overhead specific to product line of Muffler – Exhaust systems and oil pans would be saved, which is ($5,+6,)*% = $,20 (using data for.
Bridgeton Industries: Automotive Component & Fabrication Plant The Automotive Component and Fabrication Plant (ACF) was the original plant site for Bridgeton. Nov 14, · Write my college essay rated r how to write good essay introduction xml 14th amendment essay equal protection clause ap gov exams soc utm essay about essay zooming in indian heritage essay word essay on democracy meaning write an essay about your birthday card for husband year essay writing service wikipedia the uk discount code essay on a journey by train.
Assume that the selling prices, volumes, and material costs for the model year will not change for fuel tanks and doors produced by the ACF of Bridgeton Industries. Assume also that if manifolds are produced, their selling prices, volume, and material costs will not change either.
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