Case Study Analysis

Case Study Analysis
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Table of Contents
Introduction......................................................................................................................................3
Analysis of Sapphire Energy...........................................................................................................3
Recommendation for Sapphire Energy............................................................................................4
Analysis of AusCotton.....................................................................................................................4
Recommendation for AusCotton.....................................................................................................5
Conclusion.......................................................................................................................................6
References........................................................................................................................................7
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Introduction
Laburnum Group was founded in year 1920 and considered as one of largest listed Australian
firm that operates business from Victoria. Company is having operations in diverse sectors such
as home improvement, office supplies, chemicals, energy, industrial and safety products and
clothing. In order to maintain the quality parameters and accomplishing the key values properly
the business firm is well focused towards shareholder values. However, the issues are being
faced by the businesses in diverse manner such as supply chain management. Present report will
cover the analysis of two subsidiary firms of Laburnum Group. Classification of case studies can
be as Sapphire Energy and AusCotton.
Analysis of Sapphire Energy
Sapphire Energy is considered as one of reliable electric service cable provider and attracts the
customers on the basis of geographical area. Currently the products are being sold in areas like
Geelong, Melton, Shepparton, Wangaratta and Wondonga. Currently the customers are being
attracted to have better sales of aluminum triplex cable. It also helps in delivers the electricity
from the distribution pole. It means the supplier plays a critical role in sales and success of the
organization (Christopher, 2016).
Currently the business firm is having a carrying cost of cable per meter is 1.35 dollars.
According to standards and policies the Eastern Power Storeroom has to take the one twelfth of
the total production. Policy is being framed to manage the balance in production and sales. In
addition to this, it can be said that the company has also framed the policy that the suppliers must
order a minimum of 4500 meters so that company can have better opportunities in the market.
Currently the cost of operation and carrying cable is high that affects the overall process
effectiveness. It influences the inventory cost and sales per unit in negative manner (Hugos,
2018). It has been witnessed that currently the cost of cable shipment is very high and it is
recorded at the 50 $. However, it includes the cost of production and requisition. Additional 10
percent inventory carrying cost is also affecting the overall development in negative manner. It
also enhances the financial burden on the Sapphire Energy (Swink et al. 2017). Moreover,
current carting cost of cable per meter is 1.35 $. Such kind of measures and financial calculation
indicates that company is not having cost coverage in effective manner due to lack of sales
(Monczka et al. 2015).
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