Singleton’s Management Strategy Assignment
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Added on 2021-06-14
Singleton’s Management Strategy Assignment
Added on 2021-06-14
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Singleton’s Management Strategy 1SINGLETON’S MANAGEMENT STRATEGYStudent’s NameCourseProfessor’s NameUniversityCityDate
Singleton’s Management Strategy 2Analysis of the Overall Business SituationSingleton is a company that manufactures standard and customized batteries for electric golf carts and wheelchairs respectively. It has been operating for the past 28 years, and its competitive advantage is its design, which allows it to use 20 percent less lead. Its first market is the wheelchair one where it has established a monopoly with its main client who requires customized batteries. In this market, 75 percent of the wheelchairs can use the standard batteries, and there are other small volume clients. Singleton's advantage is its ability to provide these batteries under a short delivery time. The second market is the golf cart which consists of golf carts manufacturers. In this market, one of the clients in North America engages in seasonal buying. Presently, the golf cart market has new entrants from overseas that have affected the price sensitivity.Singleton currently operates a plant that handles two shifts comprises of eight hours in a day and produces approximately 115,000 pumps annually. For excessive demand, the company can hire a third shift. However, the delivery time of the customized batteries is negatively affected when these resources are stretched. The annual expenses of the company include $4m salaries, $ 1.5m running costs and $ 2.8m plant depreciation. The approximate cost of the production materials obtained from suppliers is $80 for the standard batteries and $100 for the customized. The selling price is $140 for standard batteries and $ 600 for customized. Evidently, the challenge that Singleton faces is the reduced sales in the golf cart market. The situation is worsened by the fact that production cannot be increased without interfering withthe customized batteries. The company’s strategic plan is to adopt a new lithium technology that will increase capacity to 200,000 and reduce labor cost through automation. To acquire the technology, the company needs to purchase a license from the developer. This essay analyzes the
Singleton’s Management Strategy 3options Singleton has with regards to product technology and process choice, focused manufacturing, experience curve, core competencies and process positioning and capacity strategies. Core Competencies and Process PositioningSingleton's current process positioning is a result of its core competencies. The company retains its processes in-house because it can use a design, which allows it to use 80 percent of thelead required, that gives it a competitive advantage. The core competencies enable it to manufacture the batteries, which are the core products, used to produce end products such as electric golf carts and wheelchairs. Hamel and Prahalad (2003) state that the core competencies of a company are derived from the collaboration of technology and production capabilities. For Singleton, its core competency is the ability to use a design that guarantees a competitive advantage.Additionally, when Singleton implements its new strategy, its core competency will be itsexpertise in Lithium Cell technology. The competency will be acquired from the purchase of a license from the organization that developed the technology. Additionally, it will be able to provide integration of the manufacturing process through the use of a new plant. According to Hamel and Prahalad (2003), in most cases, the core competencies are lost when strategies that reduce cost are implemented. For Singleton, the use of the new technology will reduce cost due to the reduction of labor. However, the core competencies will not be lost and the company will gain a competitive advantage instead.Lastly, management and suppliers play a significant role in ensuring the core competencies are maintained. Hamel and Prahalad (2003) suggest that the management team is mainly focused on meeting the firm’s objectives and it may neglect core competencies in the
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