P2-58 (2)
docx
keyboard_arrow_up
School
Northern Arizona University *
*We aren’t endorsed by this school
Course
MISC
Subject
Industrial Engineering
Date
Dec 6, 2023
Type
docx
Pages
2
Uploaded by BaronTurtle12796
Problem 2-58 Strategic Analysis, the Balanced Scorecard,
and Value-Chain Analysis; the Packaging Industry
Dana Packaging Company is a large producer of paper and coated-paper
containers with sales worldwide. The market for Dana’s products has
become very competitive in recent years because of the entrance of two
large European competitors. In response, Dana has decided to enter new
markets where the competition is less severe. The new markets are
principally the high end of the packaging business for products that require
more technological sophistication and better materials. Food and consumer
products companies use these more advanced products to enhance the
appeal of their high-end products. In particular, more sturdy, more colorful,
more attractive, and better-sealing packaging has some appeal in the
gourmet food business, especially in coffees, baked goods, and some dairy
products. As a consequence of the shift, Dana has had to reorient its
factory to produce the smaller batches of product associated with this new
line of business. This change has required additional training for plant
personnel and some upgrading of factory equipment to reduce setup time.
Dana’s manufacturing process begins with pulp paper, which it
produces in its own mills around the world. Some of the pulp material is
purchased from recycling operators when price and availability are
favorable. The pulp paper is then converted into paperboard, which is
produced at Dana’s own plants or purchased at times from outside
vendors. In most cases, the paperboard plants are located near the pulp
mills. At this point in the manufacturing process, the paperboard might be
coated with a plastic material, a special embossing, or some other feature.
This process is done at separate plants owned by Dana. On occasion, but
infrequently when Dana’s plants are very busy, the coating and embossing
process is outsourced to other manufacturers. The final step in the process
is filling the containers with the food product or consumer product. This
step is done exclusively at Dana-owned plants. Dana has tried to maintain
a high reputation for the quality of the filling process, stressing safety,
cleanliness, and low cost to its customers.
Required
1. What is the NEW competitive strategy for Dana Packaging Company?
a) Cost leadership because of increased competition
b) Differentiation because of niche markets
c) Differentiation because of high technology and high quality
d) Cost leadership because of cost pressures in the industry
2. Briefly explain your reasoning for the choice in part 1.
3. Develop a value chain for Dana. What are its opportunities for cost reduction and/or value
enhancement?
4. Dana’s management is considering the use of a balanced scorecard for the firm. For each of the four
areas within the balanced scorecard, list two or three examples of measurable critical success factors
that should be included.
Your preview ends here
Eager to read complete document? Join bartleby learn and gain access to the full version
- Access to all documents
- Unlimited textbook solutions
- 24/7 expert homework help