DJC’s processing time is 2 days which is much lower when compared to ACC. This will provide another added advantage to produce in a faster manner. The DJC’s Kawasaki plant has a high productivity of employee of 7.45 compared to 1.06 of ACC plant. The defective rate of ACC is 26000/ million whereas for DJC is 1 / million. 3.
QUESTION 1 Q1: How serious is the threat of DJC to American Connector Company? In the case of DJC establishing a Kawasaki – style plant in the US, Sunnyvale would be competing directly with Kawasaki’s high volume / low cost products and faces the possibility of losing lower margin, price sensitive customers. The extent of threat of DJC to American Connector Company can be analysed based on the following factors: 1. Increase in competition Total orders can be divided into four types; while only 15% of ACC’s total production volume was custom orders, 1% was prototype orders and 10% were very low volume orders, the remaining share of the volume can be assumed as high volume / standard product. This will be the market segment that will be the hardest to compete with DJC’s low cost products.
This is down to the amount of automation that DJC uses in its processes. Also because of its concept of making its processes more reliable, controlling inventory and high quality (1 defect per 1 million vs 26,000 defects per million), it did not require workers for monitoring these. Thus, in spite of paying its employees higher than the industry average, DJC is still able to maintain low labour costs. This is down to its efficiency due to automation. Another factor is the amount of asset utilization, which is low in the case of AC which means wasted labour costs.
Their competitive strategy included maintain close relations with the computer , telecomm and electronics companies, which presented as an important entry barrier for new entrants in Japan , earlier the harped on the designing of the US Companies and aimed to replicate that and also make necessary geographical improvements. The company had earlier held sale of close to 50% and with rising cost and labour prices company decided to set up a continuously operating plant in Kawasaki, Japan. Its current position was such that after building the Kawaski plant which is apparently the most efficient of the plants and which has helped DJC grab large market shares they might enter the US market with a similar in operation plant entirely being set up in USA, despite the fact that USA was a very crowded market DJC had the potential to disturb the market and grab the market with a plant like
That is why JCC has the central position with the supply chain structure and JCC is the key supplier of OEM on which behalf OEM produces three types of bikes for three different markets. JCC will have the direct contact with suppliers that providing the components of tires and other components that is regarding same as the requirement and specification of OEM. JCC is responsible to provide the types of equipment to OEM because production process will never continue without the help of supply chain of JCC. In terms of late delivery, JCC will transfer $2000 per minute delay when the supply is not achieved on time and it is very costly. JCC provides the facility of components that are necessary for the production
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In conclusion EVA does not dominate earnings with stock returns for XYZ company in five years period of study. Q1C: The important of weighted average cost of capital (WACC) and who set the WACC will discuss. WACC is widely used by financial analysis to evaluate the future project of the company. Normally, WACC used to computing the cash flows to a company on future project to discount cash flow in the present value. WACCis a calculation of organization's cost of capital in which each category of capital is proportionately weighted.
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is made by mixing binding materials as sand and gravel held together with a paste of cement and water. Conc. has many advantages, such as high fcu, ability to cast in almost any desired shape, economical and fire resistance. Yet, there are some disadvantages, like low ft, low ductility and cracking. Regardless those disadvantages, Conc.