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442 McAdam Case Solution

Solution Id Length Case Author Case Publisher
2804 2064 Words (9 Pages) Elizabeth M.A. Grasby, Jessica Bond Ivey Publishing : W16304
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Sarah Shell, the owner of McAdam, faces a key challenge in finding the right manufacturing option that balances quality, cost, and delivery. To tackle this challenge, she must decide based on a thorough analysis of the manufacturing landscape. This analysis should include the Diamond-E Framework, which looks at the factors that drive competitiveness in each industry, such as firm strategy, structure, and rivalry, as well as related and supporting industries. In addition to the quantitative analysis, Sarah should also consider qualitative factors when deciding on the best manufacturing options. This may include cultural fit, ethical considerations, and the potential for future growth and collaboration. Finally, Sarah should consider whether to pursue local or international manufacturing, weighing the benefits and drawbacks of each option. Factors such as the cost of production, access to raw materials and markets, and the availability of skilled labour should be considered. Ultimately, the decision will come down to what is best for McAdam and its goals for the future.

Following questions are answered in this case study solution

  1. What is the key challenge faced by Sarah Shell, owner of McAdam? 

  2. Develop a Vision Statement for McAdam (What type of company does McAdam want to be in the future?) 

  3. Describe Mc Adam using the Diamond-E Framework?

  4. Develop a Porters 5-Forces Model for Mc Adam?

  5. What additional Qualitative Analysis should be undertaken to help Sarah Shell decide on best manufacturing options?

  6. Should Sarah Shell, owner of McAdam, consider Local or International Manufacturing? Why?

Case Analysis for 442 McAdam Case Solution

1. What is the key challenge faced by Sarah Shell, owner of McAdam? 

The key challenge faced by Sarah Shell, the owner of McAdam, is the rising cost of production, which is negatively impacting the profitability of the company. According to the given information, Sarah has noticed that the cost of producing each unit of McAdam's product has increased, while the price they can charge for their product has remained the same. This means that McAdam is making less money per unit sold, which is a serious problem for the business. Sarah needs to address this challenge to ensure that McAdam remains profitable and continues to grow. The cost of labour, the price of raw materials, and the price of energy are just a few of the reasons causing the cost of manufacturing to rise. Each of these factors needs to be carefully considered to determine the root cause of the problem and identify possible solutions. The price of raw materials is one of the major variables driving up the cost of production. The cost of the materials McAdam uses to produce its product has increased, driving up the overall cost of production. Sarah may need to consider alternative suppliers or negotiate with existing suppliers to reduce the cost of the raw materials.

Finally, energy cost is also contributing to the rising cost of production. The cost of energy has increased, which is driving up the cost of production. Sarah may need to consider alternative energy sources or negotiate with existing energy suppliers to reduce energy costs. In conclusion, the key challenge Sarah Shell, owner of McAdam, is the rising cost of production, negatively impacting the company's profitability. Sarah has to deal with this issue by carefully analysing the elements causing the cost of production to rise, such as the cost of labour, the cost of raw materials, and the cost of energy. By identifying the root cause of the problem and implementing effective solutions, Sarah can help ensure that McAdam remains profitable and continues to grow.

2. Develop a Vision Statement for McAdam (What type of company does McAdam want to be in the future?)

A vision statement for McAdam should encapsulate the company's aspirations and future goals. It should provide a clear direction for the company and inspire employees, customers and stakeholders. A good vision statement for McAdam could be: 

"At McAdam, we strive to be a world-renowned leader in sustainable and ethical manufacturing, providing innovative and high-quality products that meet the needs of our customers and contribute to a better world." 

This vision statement highlights McAdam's commitment to sustainability and ethical manufacturing practices, as well as its focus on providing innovative and high-quality products. It also emphasizes the importance of meeting customer needs and positively impacting the world. Having a clear and inspiring vision statement can help McAdam stay focused on its goals and make better decisions that align with its values and aspirations. It can also help attract and retain employees, customers, and partners with the same values and vision.

At McAdam, we believe in positively impacting our products and how we conduct business and interact with our stakeholders. Our vision statement is a testament to our unwavering commitment to a sustainable and responsible future for our customers, employees, stakeholders, and the planet. By aligning our actions with our values and vision, we aim to build a thriving company that sets the bar for ethical and responsible manufacturing practices in the industry.

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