General Appliances Essay

1107 words - 4 pages

Introduction:The General Appliance Corporation is a manufacturer of all types of home appliances. The company has a decentralized, divisional organizational structure, which consists of four product divisions (electric stove, laundry equipment, refrigeration and miscellaneous appliance division), four manufacturing divisions (chrome products, electric motor, gear and transmission and stamping division) and six staff offices (finance, engineering, manufacturing, industrial relations, purchasing and marketing staff). The staff offices do not have functional authority over the divisional general managers, who are each responsible for their own divisional personnel. The manufacturing division made approximately 75 percent of their sales to the product division. In addition, the parts made by the manufacturing division is designed and engineered by the product divisions. Since the eight divisions are expected to act like independent companies, the transfer prices are negotiated amongst themselves. But, if two divisions could not agree on a price, they submit the dispute to the finance staff for arbitration. The product division does not have the power to decide whether to buy from within the company or from outside. If there was a disagreement with the sourcing, the manufacturing division could appeal to the purchasing staff to reverse the decision.Problem:At the General Appliance Corporation, the purchasing staffs are the personnel that decide which part would continue to be manufactured within the company (org. chart may need to be revised). When the part is decided to be manufactured internally, the manufacturing division must hold the price at a level the product (purchaser) division could purchase it outside. Currently, the managers do not have the freedom to source and choose the alternative that is in their best interest, even though an alternative for sourcing does exist.The three problems that exist in the company are:-Determining a transfer price that includes the extra $0.80 per unit spent on developing the new quality standards. Also, the arbitration committee should determine whether the appearance is a subjective or objective matter.-An excess capacity (supply is greater than demand) caused a temporary decrease in the selling price.-The standard price used for calculations of the total cost, profit and proposed price is determined from the price given in a competitor's proposal - this is not a definite price.Investment Centres - don't know when to produce or when to outsource (what role does innovation or engineering for lower costs play?)For each case, calculate if it's better to outsource or manufactureArbitration committee which considers all "staff" functionsDo something quick & fast (cheap) and easy to doAnalysis:Stove Top Problem - Survey has shown that the company's reputation as a producer of quality products has deteriorated, and resulted in the Chrome Products Division implementing quality improvements to the stove tops....

Find Another Essay On General Appliances

Maytag Information Essay

3449 words - 14 pages Personalities in top managementMaytag Corporation had as CEO Leonard Hadley, who served the company as a cost accountant since joining the company. In 1996 the corporation hired Lloyd D. Ward to serve as Executive Vice President and President of Maytag Appliances. Ward had a good marketing background, and had a great role in implementing a new product on the market in 1997. The new product was the Neptune washer. In 1999 Ward replaces Hadley as

Electrical Rewiring Essay

1369 words - 5 pages lights? Too many floor lamps? Too many radios and TVs? That is seldom the case. The wiring usually is inadequate because you have added many electrical appliances that were not considered or perhaps were not even on the market at the time of the original wiring job. The installation does not provide enough circuits to operate a wide assortment of small kitchen appliances, plus range, water heater, clothes dryer, room air conditioners and other

Phantom Loads of Energy

2555 words - 10 pages public service announcement, using observable learning, reinforcement, by saving money, and praise, and generalization, by associating smaller appliances with any electronic that can be turned off. The long term benefit of learning to unplug electronics that are not in use is curbed usage of resources, as well as a longer sustainability rate of the Earth. I: Conservation of Energy: Phantom Loads and the Environment Of the many kinds of

KitchenAid Artisan Stand Mixer Beats the Competition for Home Baking

907 words - 4 pages Home bakers have long known the quality of the mixer utilized for mixing recipe ingredients, has a direct impact on the quality of the finished product. One of the most significant appliances in the kitchen of the home baker’s arsenal is the stand mixer. The mixer must be able to blend, mix, and whip the most delicate items without crushing the delicate textures and air pockets. Conversely, it must possess a durable, strong motor capable of

Haier Case

1614 words - 6 pages are global corporate giants and are involved in many other businesses such as General Electric Company and Siemens AG.Product differentiation:This is the most important strategy in this industry. Competitors will add new products and features to existing products. In order to be able to compete Haier needs to keep up by introducing new innovative household appliances and electronics products. Also, Haier needs to improve on global

fire alarm

1853 words - 7 pages building with modern system, but is found in lots of schools and older buildings. Other methods include: Audible textual appliances, which are employed as part of a fire alarm system that includes Emergency Voice Alarm Communications (EVAC) capabilities. High reliability speakers are used to notify the occupants of the need for action in connection with a fire or other emergency. These speakers are employed in large facilities where general

International Marketing Plan: Mission Statement and Objectives: Marketing GE Air Conditioners in India

1237 words - 5 pages manufacturing, services, and technology businesses in the country" (General Electric, 2008). International product sales opportunities in India have growth potential because "GE is one of the largest manufacturers of major appliances in the world, introducing advanced appliances to improve peoples' lives and conserve electricity" (General Electric, 2008). With the opportunity present, GE needs to establish a mission statement.Mission statements are

Effects Of Iot

662 words - 3 pages children, employees, or otherindividuals that may require special assistance. Within a decade, these devices canbecome smaller, lighter, or may even become embedded into our bodies-with enough advances in technology, and of course, general population approval.A smart house may sound like something straight from The Jetsons or simply athing of the far future. Yet, it may be coming to your local neighborhood within afew years. Remote management of

Nuclear Energy Problem

4254 words - 17 pages going to recess they can make sure the lights are turned off in the classroom and the computers are shut down so the devices will not be using any energy. Also children can give their parents a tip by telling them to buy fruits and vegetables from local grown places. This tip will cut down on carbon dioxide emissions. Students can be just as helpful to conserving energy as adults. Children and adults can use energy efficient appliances and devices

Home Safety Guide

680 words - 3 pages electrical accidents if you follow some basic home electrical safety tips. Remove or replace any appliances with frayed cords and broken or cracked plugs. Turn off and unplug electrical appliances whenever they are not in use. Make sure your appliances are placed with adequate space around them to prevent overheating. Be extremely careful when using an electrical appliance near a source of water like a sink or bucket of water. Be familiar with

General Electric introduction

764 words - 3 pages General Electric Company description and the history of developmentGeneral Electric Company (GE), incorporated on April 15, 1892, is a diversified technology and financial services company.1878-1904. From the invention of the first practical incandescent light bulb to building America's first Central Power Station, the GE tradition of life-changing innovations was underway. With power and light, GE provided the basis of modern life, quickly

Similar Essays

Turkish Home Appliances Industry Essay

4607 words - 18 pages Always, people worked hard to store their foods fresh and eatable Turkish Home Appliances Sector The Turkish home appliances sector started to its production activity as an assembly industry in the 1950's. The first Turkish made refrigerator was introduced to the market in 1960. It was produced by "Arçelik". The seventies were the first years that Turkey produced the other domestic home appliance products under its

Efficient Home Energy Management Essay

964 words - 4 pages maintain a report of the device based on its real time working .The other is a categorized service report where the users receive increasingly customized results along with itemized energy saving upgrade recommendations over a period of time. In general , the categorized service report acts as an ENERGY GUIDE . It lists out the current energy related features of the home devices .These include information about The Unit Energy Consumption(UEC) of the

Whirlpool Corporation Case Study

1849 words - 7 pages laundry appliances, refrigerators and freezers, cooking appliances, dishwashers, and other small household appliances.Price: In general, Whirlpool's prices are a bit more expensive than prices of their competitors. This is due to the fact that the quality of their products is overall higher than that of their competitors. Over the years Whirlpool gained trust of its costumers, therefore the Whirlpool's costumers are always coming back to buy more and

Cars And Its Use Essay

491 words - 2 pages Mumbai 5 Chennai 6 Kolkata 7 Jaipur 8 Hyderabad 9 Banglore 10 New Delhi http://www.siliconindia.com/news/general/10-Best-Indian-Cities-to-Live-In-nid-144909-cid-1.htmlThe best cities to live in the world are rated based on the quality of living conditions as defined by Mercer's Survey Criteria. It analyzes living conditions according to 39 factors, grouped in 10 categories:Political and social environment (political