Discuss & justify the business restructuring that you would carry out to Aston Enterprises in order to deal with the business challenges being faced.
The company manufactures some of its products in the West
Midlands,whilst it also distributes products made in the Far East
under its own brand name.
An ABC Analysis of its products shows that 20% of the
products it manufactures &sells account for 70 % of its
turnover, another 30% of its products account for 20%of its
turnover & the remaining 50% account for 10% of its turnover.
Aston Enterprises Limited has
o a 30% share of the UK healthcare appliance market
o a 25% share of the lucrative North American market
o a 35% share of the European market
o a 25% share of the increasingly important & expanding
Asian & Australianmarkets
o a 10% share of the African & South American markets
The overall Company sales in these markets account for the
following percentages ofits turnover;
o United Kingdom 15%
o Europe 25%
o North America 25%
o Asia 15%
o Australia 8%
o Africa 6%
o South America 6%
The world economy has been subjected to a significant
downturn during the last 4years which has caused a 10% reduction in
total turnover compared to 2008.
Questions
1 Using your imagination as necessary, & taking into
account the currentdifficult economic climate, carry out an
evaluation of the challenges that AstonEnterprises is facing;
(a) from a manufacturing perspective?
(b) from a logistics perspective?
Clearly state any assumptions that you make.
2 Discuss & justify the business restructuring that you would carry out to AstonEnterprises in order to deal with the business challenges being faced.
3 Suggest the changes that you might make to the business in order toenhance the competencies of your manufacturing & logistics operations in this highlycompetitive global market.
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