ALLENTOWN MATERIALS CORPORATION

Presented by

Absin

Diya

Ramesh

Nirmal

Shailendar

SWOT ANALYSIS

STRENGTH Market leader High innovations Good technical skills Strong R&D and manufacturing 10% growth per year

SWOT ANALYSIS

WEAKNESS Lack of co-ordination Wrong person for the wrong job Lack off understand the customer needs Poor marketing and sales

SWOT ANALYSIS

OPPORTUNITY Commercial market increasing Use innovations ideas to produce at low cost

SWOT ANALYSIS

Threats Increase in competition Consumers are more price sensitive

DRIVING FORCE

Competition increases Sales decreases Profitability decreases

NEGATIVE KEY FACTOR

Lack of coordination Objectives and goals are not clear Product growth decline Innovations are not unique Cost was reduced still gross margin is decline Informal system for comparing plant

performance They found lack of forecasting marketing

trend Roger doesn’t want to take risk

KEY SUCCESS FACTOR

For competitors substantial capital investment, patents, technological need huge investments this make allentown to shine.

Allentown was strong in financial and profit positions

Allen town is market leader in glasses and ceramic

MANUFACTURING

High volume in 3 plants Were held responsible for gross margin and

were profit centers Informal system for comparing plant

performance Last 2 years volume shrunk for price cuts Even cost reduce gross margin still declined Need direction and low cost resistors No operational objectives Sales focused on volume no concern about

margin

Sales will sell for anything and plant wont buy for untill 40%

Marketing failed to provide direction for profitable growth

Product development also not given them would run well on their production line

And no low cost product

PRODUCT DEVELOPMENT

Need more marketing and sales people involvement

Problem with technical department Meeting happen once in 28 days to develop

new product Since 1992 don rogers conducting meeting

things are changing with his involvement They took 7 years to develop a glass K

product actually of 3 years

MARKETING

Marketing felt lack of cooperation from manufacturing

Manufacturing is unwilling to take risk Marketing feel distracted to spend inordinate

time in plant Other department informally convey that

marketing is doing lousy job. Proprietary advantage to our business which

we cannot do

SALES

They have good relationship with customers No co-ordination between sales and

marketing Marketing said sales competence is not high

and sales said we do not believes in marketing information

No fixed process for forecasting the sales Sales had requested quick deliver to

customer needs but plant rejected the short notice without upsetting operations.

LOOKING FORWARD Appointing right persons for right job with right skills eg.

marketing Separate manager for each department (more focus) To Set Clear objectives and goals Sales must done based on incentives Innovate effective and low cost products Formal system for comparing plant performance Need coordination among departments so system must

change All department meeting must held every month R&D innovation must be based on customer needs R&D and technology is good hence they can diversify

into other segments. Industry mature so they can acquired