Kaplan The past 40 years has seen a large increase in the number of articles submitted to journals ranked in the top-5 of their discipline. This increase is the rational response, by faculty, to the overweighting of publications in these journals by university promotions and tenure committees.
The company should concentrate on selling to high volume customers who purchase stocked items. Efforts should be made to boost orders for stocked items and move away from non-stocked items.
This is under the assumption that prices will be held constant.
Kanthal management should not necessarily decline the orders for non-stocked items; rather they should charge a healthy premium for them. By charging the higher prices, this allows the company to see how important non-stocked items are to the customer. If the non-stocked items are of any importance to the operations of the customer, they will continue to purchase and pay the premium, or they will try to adjust their operations so that it will accommodate the stocked items.
On the other hand, the customer could decide to purchase these items from another supplier. Kanthal should take measures to minimize costs that are associated with the non-stocked items.
The case does not show any evidence of Kanthal attempting to reduce cost activities. If the company could successfully reduce costs, this would lead to an improved operating profit margin related to stocked items.
Also, Kanthal needs to focus their sales on the percent profit margin or the true bottom line contribution of each order to the company.
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Find out more. Join our monthly newsletter. This is a solution for Kanthal (Harvard Business Case Study) Kanthal Case Study SolutionsINTRODUCTION:Kanthal is company that specializes in the production and sales of computed by dividing the total number of orders into total S&A costs (refer to Exhibit 4 in the case).