Question 5: Read the below scenario carefully and answer the questions? YOU BE THE CONSULTANT - Changing the Rules of the Game Entrepreneur Andrew Field bought a print shop and used his selling skills to boost sales to about $1 million annually. The high fixed cost structure of his business resulted in only a break-even situation, however, and Field saw no hope for improvement given his relatively small local markets. The idea for a Web site finally struck. Field devised an interactive Web site system to fill his idle capacity. Customers design and submit their orders through a simple program. The company then e-mails a project number and link to a proof of the order, and once approved by the customer, a production, shipping, and delivery date are established. Field filled his idle capacity and then took his company to the next level by soliciting more work and subcontracting that to competitor companies. Word of the ease and reliability of Field's system has spread, and the company now averages about 7,000 visitors to its site each day, generating sales of $8 to $9 million. Q1. Would Field's strategy for handling excess capacity be feasible without the Web? Explain. Q2. In what ways does the Web enable Field's strategy to be successful? Q3. Can you make any suggestions for improving the site's design?
Question 5: Read the below scenario carefully and answer the questions? YOU BE THE CONSULTANT - Changing the Rules of the Game Entrepreneur Andrew Field bought a print shop and used his selling skills to boost sales to about $1 million annually. The high fixed cost structure of his business resulted in only a break-even situation, however, and Field saw no hope for improvement given his relatively small local markets. The idea for a Web site finally struck. Field devised an interactive Web site system to fill his idle capacity. Customers design and submit their orders through a simple program. The company then e-mails a project number and link to a proof of the order, and once approved by the customer, a production, shipping, and delivery date are established. Field filled his idle capacity and then took his company to the next level by soliciting more work and subcontracting that to competitor companies. Word of the ease and reliability of Field's system has spread, and the company now averages about 7,000 visitors to its site each day, generating sales of $8 to $9 million. Q1. Would Field's strategy for handling excess capacity be feasible without the Web? Explain. Q2. In what ways does the Web enable Field's strategy to be successful? Q3. Can you make any suggestions for improving the site's design?
Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment
Section: Chapter Questions
Problem 1CE
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Breakeven Analysis
Break Even Analysis is a term used in business, cost accounting and economics. It refers to a point where the total cost incurred becomes equal to the total revenue earned. Break Even Analysis determines the number of units to be sold to earn the revenue required to cover the total costs. Total cost is a sum total of fixed and variable costs.
Process analysis
The term process analysis can be defined as breakdown of production process into different phases that converts inputs into output. A series of routine activities are incorporated using organizational resources with a view to achieve operational excellence.
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Transcribed Image Text:Question 5: Read the below scenario carefully and answer the questions?
YOU BE THE CONSULTANT - Changing the Rules of the Game
Entrepreneur Andrew Field bought a print shop and used his selling skills to boost sales to about
$1 million annually. The high fixed cost structure of his business resulted in only a break-even
situation, however, and Field saw no hope for improvement given his relatively small local
markets.
The idea for a Web site finally struck. Field devised an interactive Web site system to fill his idle
capacity. Customers design and submit their orders through a simple program. The company
then e-mails a project number and link to a proof of the order, and once approved by the
customer, a production, shipping, and delivery date are established.
Field filled his idle capacity and then took his company to the next level by soliciting more work
and subcontracting that to competitor companies. Word of the ease and reliability of Field's
system has spread, and the company now averages about 7,000 visitors to its site each day,
generating sales of $8 to $9 million.
Q1. Would Field's strategy for handling excess capacity be feasible without the Web? Explain.
Q2. In what ways does the Web enable Field's strategy to be successful?
Q3. Can you make any suggestions for improving the site's design?
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