Essay About Total Spice-Ham And Six-Pound Tin

Analysis of Business Problems
Case Analysis
General Information
Subject
Analysis of Business Problems
Case
Hauser Packing
Prepared By
Okamoto, Shihori / Mora, Alex
20 September 2012
Steps 1-3: Problem definition / criteria selection / alternative developments
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
Criteria selection
Cost (compare “make option” with “buy option”, i.e. outsourcing
Capacity (space, staff)
Know-How / Expertise / Reliability / Quality
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