Wilfrid Laurier University: Design Craft Case Study Analysis

This case study analyzes the challenges faced by Design Craft, a company experiencing slow growth and reduced sales due to issues in costing, sales and marketing alignment, and inefficient business procedures. The analysis identifies key success factors, including international reputation and a good customer base, and explores various alternatives to improve sales, such as utilizing social media, asking for referrals, and offering promotions. The study includes quantitative analysis of sales and product costs, as well as a qualitative assessment of social media's pros and cons. The recommendations suggest that Design Craft should focus on offering products that meet customer needs and leverage social media effectively to increase sales. The case study highlights the importance of strategic pricing, efficient overhead allocation, and customer-centric approaches to ensure sustainable business growth. The assignment also explores the Monroe Clock Company case, addressing overhead allocation issues for a new timer product and potential pricing strategies to achieve a target contribution. The cases emphasize the need for accurate costing methods and strategic pricing to ensure profitability and success in the competitive market.

Issue identification
Design Craft experienced basic problems like the slow sales period in January, which was the
appropriate time for Carr to focus on Design Management. The immediate problems included
several management at Design industries, Ltd recognized that the growth in the upscale
dinnerware markets was starting to slow, making the organization to search for other
opportunities of growth. The organization current costing method was the contributed to the slow
sales in the month of January. Poor sales and marketing alignment was contributed to the slow
sales in the organizations products. This is because if the marketing team and sales people are
not getting along, collaborating, or sharing information affects the sales negatively. Old school
techniques of selling goods is another cause of the reduced sales. Even though there are some old
school techniques of selling that worked for the organization still, there are some techniques that
the organization needs to do away with in order to maximize the sales. Poor training of the
employees in the organization has also led to the slow sales in the organization. This is because
when employees are not well equipped with the jobs in the organization their productivity and
efficiency tends to reduce greatly. The slow growth in the organization is caused by a branding
that is under developed, inadequate collaboration within the organization and impractical and
inefficient business procedures. Moreover, Design Craft lacks long-term goals and short-term
goals that are realistic. This has made it hard for the organization to grow since without a clear
vision the organization lacks the driving force to progress. Design Craft could experience several
implications of slow growth that include shortage of cash, loss of control and compromised
quality. Design craft would experience a shortage in cash due to a reduction in its operation
making it more vulnerable to financial crisis. Slow growth would also cause loss in control in the
organization due frustration on the methods that are currently undertaken in the organization.

Identification of the Key Success factors
There are several success factors that Design Craft enjoys. One of them is the international
reputation it has as a producer of high quality dinnerware at affordable prices owing to the skills
of its master artisans, together with the application of innovative technology in the
manufacturing process. Its dinnerware is commonly used in fine hotels, restaurants, and
residences throughout the world. Another success factor for Design Craft is its expansion plans,
where the company leased a small manufacturing facility on the outskirts of Sheffield and started
to produce three products, which are small decorations, large decorations, specialty decorations
and large decorations. According to exhibit 4, it is evident that the organization enjoys a good
customer base. With this increased number of customers, Design Craft is assured to succeed
since their products have a ready market. Moreover, exhibit three shows the organization is
effectively utilizing its percentage plant capacity. With increased utilization of the plant means
that the organization is assured of continued growth. For Design Craft to prosper, the company
requires to reflect on quality, productivity and low cost leader. Design Craft also needs to check
on its pricing and efficiency of its manufacturing processes since it is losing a lot of money on
both large and small decorations, which it produces, while making money on specialty
decorations.
Identification of the alternatives
There are several alternatives that Design Craft should use to maximize it sales through
alternatives such as speaking to the current consumers, asking for referrals, allowing promotion
or limited time-sale and utilizing the social media platforms to the organization advantage.

Utilizing social media platforms to enhance the offerings of the organization is a good strategy is
a good way to increase the awareness of customers thus leading to the increase in the number of
sales in an organization. Design Craft should not view the social media platform as a tool for
sales, but as an accessible medium of communication. The organization should utilize it to
disseminate its information, highlight how the organization works or repost and retweet articles
of particular importance. Asking for referrals is another alternative that can be used. Design Craft
present customers are a significant assent in offering the organization with customer referrals.
Design Craft should inquire the contact and names information of other small owners of
businesses, when it discovers that the customer is happy and satisfied with the organization
product. Design Craft can also utilize testimonials from customers and utilize those in
newsletters, emails and website. Finally, Design Craft should possess a promotion or limited-
time sale. Putting discounts in the Design Craft products may seem unusual to maximize sales,
however, providing a minimal discount could make the services and product of the organization
more appealing.to customers. Design craft should distinctly outline the sale parameters including
end and start dates so that there is no misunderstanding when he customer makes a decision to
remain working with the organization once the promotion comes to an end.
Quantitative Analysis
Sales Analysis
Decorations Decorations Per Box Sales Price per Box
Small Decorations 12 $ 9.00
Large decorations 6 $ 11.00

Specialty decorations 1 $ 17.00
Analysis of unit product costs
Overhead Item Annual Cost
Production Sheduling $ 85,000
Machine Setups $ 160,000
Equipment depreciation $ 220,000
Plant depreciation $ 150,000
Quality inspection $ 70,000
Packing $ 185,000
Plant administration $ 300,000
Total Overhead $ 1,170,000
Qualitative analysis
Pros of social media platform as a means of increasing the organization sales
Social media platforms as a means of increasing the sales in the organization is less costly as
compared to other tactics of marketing. Since most of the social media platforms are free to use,
this becomes very easy for Design craft to use this channel as a means of marketing its products.
The organization can easily establish a business profile on the social media platforms. Moreover,
Design Craft could expose its brand into wider audiences. Presently, almost all the individuals
have the privilege to be to be more successful. In addition to that social media creates a
relationship that is authentic. The continued link.

Cons of social media platform as a means of increasing the organization sales
This method of increasing sales is time consuming, which means that organizations will not have
the capability to grow since most of the production time is utilized in social media. Moreover,
this method can come up with users who are negative. A critical issue concerning social media
platforms. The negative components consist of trolls, spanners and other kinds of individuals
who are malicious.
Recommendation
According the slow growth and reduced sales experienced by Design Craft, the company needs
is supposed to offer products that meet the customer’s needs. This will ensure the organization is
able to minimize the spending of individuals.
Moreover, when it comes to minimal sales in the organization , the organization can use this
pencils in ink and organization.