Analysis of Business Problems

Case Analysis

General Information

Subject Analysis of Business Problems

Case Hauser Packing

Team A3

Prepared By Okamoto, Shihori / Mora, Alex

Date 20 September 2012

Steps 1-3: Problem definition / criteria selection / alternative developments

1. Key facts for problem definition

• Manufacturer of several meat products

• Sales of $30,000,000 / year

• Clients: Retailers, Hotels, Restaurants, Large-scale consumers

• Do not produce Spiced-Ham but sell about 100,000 lbs (in six-pound tin)

• Total Spice-Ham sold amounts $2,450,000

• Satisfactory quality supplied, and no reason to expect the availability of supply in the future

• Difficulty to sell Spiced-Ham due to not being produced in its own plant

• Difficulty to achieve the high prices desired

• Do not sell to other manufacturers 2. Criteria selection

• Cost (compare “make option” with “buy option”, i.e. outsourcing

• Capacity (space, staff)

• Know-How / Expertise / Reliability / Quality

3. Alternative developments

• In-house production (buying equipment) Spiced-Ham

• Quality control

• Adjustment in pricing

• Low investment

Step 4: Analysis

Criteria Cost (quantitative approach)

• Low one time cost ($11,000)

• 6 pounds tins costs lower in “in house” production ($240 vs. $245)

• No extra fixed costs

Criteria Capacity

• Availability to combine both options to expand (new markets)

• No problem of production

Criteria Know-How / Expertise / Reliability / Quality

• Flexibility to play with the quality of the production

• No expertise producing Spiced-Ham

• Training of