4. Based on some of the financial information provided, what will the companys gross sales be next year (strictly based on the information provided)? What will be the gross sales of the growth stage medical products?
Brady Medical Products Company Case Print This Page 5-Years As CEO Bill Wright is the CEO of the Brady Medical Products Company, a manufacturing company that makes a number of different medical devices for regional hospitals and medical centers. Bill is just putting the final touches on next year's Strategy Plan document. Bill really feels good about the plan and is very pleased with how well he has worked the external environment factors found in the plan, meaning he really has a good handle on the economic, regulatory, technological and competitive factors that play into his company's strategic goals and objectives for next year, as laid out in the plan. 1-Year as VP Of Marketing Jim Johnson, the VP of Marketing, was on vacation for 2-weeks and very soon after returning immediately went on the road for another 2-weeks with several of his key marketing staff members to meet with clients throughout the region. Bill Wright has called a senior staff meeting, with Jim and others, to go over next year's Strategy Plan, once Jim has returned. Jim and the marketing department have been extremely busy but will find the time to support Bill's meeting. 3-Years With The Company Hannah Dee, the Director of Production/Manufacturing, provided input to the Strategic Plan Bill completed, outlining production forecasting data and some technology challenges the production department is facing next year. It is interesting to note that Hannah and Jim Johnson do not communicate very often and generally via email only. It seems a year or so ago there was a falling out between Hannah and Jim over comments made about each other to other senior management staff members. 10-Years With The Company Randy Tutor is the Supply Chain and Logistics Manager, responsible for all of the inbound raw materials used in production, internal inventory and capacity management. He is also responsible for all external logistical operations associated with getting the outbound products from the company's docks to the end users, which include (external) warehousing, inventory control and distribution, and again to the end users over a 500-mile radius. Other Company Information Product Life Cycle and Production Information The company is at the maturity stage for about 50% of its 28 different medical product lines with production levels holding strong for this group. The remaining medical product lines are seeing a pretty steep increase in customer demand (growth stage) with growth expectations for these medical products to be 30% higher for the coming year over the previous year. Gross Sales Information The company's gross sales for last year was $57M, with 60% of the sales coming from the maturity stage products (which are forecast to hold steady next year) and the other 40% of sales coming from the growth stage products. The company's gross sales future does look very good. Process Improvement Information Randy Tutor has several different internal projects in place associated with supply chain and logistical processes looking at basic, benchmark and competitive processes associated with both the internal supply chain and the external logistics operations. Bill Wright has provided Randy with $4.7M for the process improvements projects over the next 12-15 months. Randy has prioritized the processes to be improved, focusing on those processes that are directly related to improving the company's competitive advantage - better purchasing practices for material and reduced shipping costs (both in and outbound). He is also working on some important processes associated with customer interfacing - online portal for customers to see their orders in real time and shipping notifications. Company Value Time Line Process Periods Current Year Order Received Material Received Production Time Store Finished Product Prep for Shipping Finished Product 1st Distribution Warehousing 2nd Distribution End User 3 days 5 days 17 days 2 days 2 days 4 days 3 days 2 days 38 days from order Projected for Next Year Order Received Material Received Production Time Store Finished Product Prep for Shipping Finished Product 1st Distribution Warehousing 2nd Distribution End User 3 days 4 days 21 days 2 days 2 days 3.5 days 2.5 days 1.5 days 39.5 days from order Brady Medical Products Company Case Print This Page 5-Years As CEO Bill Wright is the CEO of the Brady Medical Products Company, a manufacturing company that makes a number of different medical devices for regional hospitals and medical centers. Bill is just putting the final touches on next year's Strategy Plan document. Bill really feels good about the plan and is very pleased with how well he has worked the external environment factors found in the plan, meaning he really has a good handle on the economic, regulatory, technological and competitive factors that play into his company's strategic goals and objectives for next year, as laid out in the plan. 1-Year as VP Of Marketing Jim Johnson, the VP of Marketing, was on vacation for 2-weeks and very soon after returning immediately went on the road for another 2-weeks with several of his key marketing staff members to meet with clients throughout the region. Bill Wright has called a senior staff meeting, with Jim and others, to go over next year's Strategy Plan, once Jim has returned. Jim and the marketing department have been extremely busy but will find the time to support Bill's meeting. 3-Years With The Company Hannah Dee, the Director of Production/Manufacturing, provided input to the Strategic Plan Bill completed, outlining production forecasting data and some technology challenges the production department is facing next year. It is interesting to note that Hannah and Jim Johnson do not communicate very often and generally via email only. It seems a year or so ago there was a falling out between Hannah and Jim over comments made about each other to other senior management staff members. 10-Years With The Company Randy Tutor is the Supply Chain and Logistics Manager, responsible for all of the inbound raw materials used in production, internal inventory and capacity management. He is also responsible for all external logistical operations associated with getting the outbound products from the company's docks to the end users, which include (external) warehousing, inventory control and distribution, and again to the end users over a 500-mile radius. Other Company Information Product Life Cycle and Production Information The company is at the maturity stage for about 50% of its 28 different medical product lines with production levels holding strong for this group. The remaining medical product lines are seeing a pretty steep increase in customer demand (growth stage) with growth expectations for these medical products to be 30% higher for the coming year over the previous year. Gross Sales Information The company's gross sales for last year was $57M, with 60% of the sales coming from the maturity stage products (which are forecast to hold steady next year) and the other 40% of sales coming from the growth stage products. The company's gross sales future does look very good. Process Improvement Information Randy Tutor has several different internal projects in place associated with supply chain and logistical processes looking at basic, benchmark and competitive processes associated with both the internal supply chain and the external logistics operations. Bill Wright has provided Randy with $4.7M for the process improvements projects over the next 12-15 months. Randy has prioritized the processes to be improved, focusing on those processes that are directly related to improving the company's competitive advantage - better purchasing practices for material and reduced shipping costs (both in and outbound). He is also working on some important processes associated with customer interfacing - online portal for customers to see their orders in real time and shipping notifications. Company Value Time Line Process Periods Current Year Order Received Material Received Production Time Store Finished Product Prep for Shipping Finished Product 1st Distribution Warehousing 2nd Distribution End User 3 days 5 days 17 days 2 days 2 days 4 days 3 days 2 days 38 days from order Projected for Next Year Order Received Material Received Production Time Store Finished Product Prep for Shipping Finished Product 1st Distribution Warehousing 2nd Distribution End User 3 days 4 days 21 days 2 days 2 days 3.5 days 2.5 days 1.5 days 39.5 days from order
