Stoeckl Kinder Products Ltd.

Stoeckl Kinder Products Ltd.

Case Study

Module 6

Session 2

Prepared by: Joanna Sharpe

Member ID: 8001063

March 18, 2017

Executive Summary

        Stoeckl Kinder Products Ltd (SKP) opened in 1920 as a shop where the owner Berndt Stoeckl crafted and sold wooden baby furniture such as cribs, chairs, stools, and tables. As the business grew Berndt Stoeckl hired employees and purchased a small manufacturing space. When he passed on, Berndt Stoeckl left 90% of his business to his two sons. These sons grew the business further, keeping with the times and selling products such as carriages and car seats. Over the years many of the Stoeckl family members owned a piece of the company and eventually Berndt Stoeckls two grandsons became co-CEOs of SKP.         

        With the involvement of many of the Stoeckl family members, the company has suffered from clear leadership and company direction. The co-CEOs have agreed on a big picture goal, but have a difference of opinion on the direction and strategies to achieve this company goal. Their current supply chain management (SCM) is causing issues for the company by not having a cohesive strategy and inefficient procedures. All three product areas utilize different sourcing and manufacturing suppliers, ultimately meaning not using cost effective practices, utilizing a great deal of staff time, and overworking the furniture purchaser. David Lim is also faced with the issue of looking for a new hard-goods manufacturer that will provide lower costs to SKP and produce minimal risk; he has to analysis options in five countries: Bangladesh, Czech Republic, Hungary, Turkey, and Vietnam.

        A thorough analysis of SKP will be completed using root case analysis: including a SWOT analysis, risk level assessment, pro and con list, international data analysis, and revenue assessment. After this analysis has been completed, four options will be presented to SKP. These options include: diversify SKP product lines, diversify geographically, global sourcing/manufacturing change, and minimize sale countries.

         A solid recommendation for SKP will be presented involving a combination of global sourcing/manufacturing change and minimizing sale countries options. Standing behind this recommendation is an implementation process and monitor and control procedures to put in place. These controls will help monitor the success of the recommendation; furthering the overall success of SKP.  

Table of Contents

Executive Summary                                                                        2        

Issue Identification                                                                         4

Root Cause Analysis                                                                5

        SWOT Analysis                                                                6

Alternatives and Options                                                                9

Recommendations                                                                        11