Airvent Fans Co., which manufactures ceiling fans for two OEM customers, Tropical and WindStar, is challenged in fulfilling the demands of its customers. Its plant, currently operating at the full capacity of 0.8 million fans annually (3200 fans/day), is looking at the possibility of improvements within current available resources to increase output in order to handle the immediate future demand, before deciding whether to outsource some of the operations in the long term. This involved thorough studies of the processes, and it was concluded that capacity enhancements were required at various stations. To handle future projected demand that is rapidly growing, the management plans to further increase the planned capacity of the plant to suitable levels. The current layout is incapable of handling such a scale of operations and thus, the concept of lean manufacturing is applied to help restructure the plant's layout and operations. The design and improvements required the determination of various factors. This case study identifies and estimates the various parameters needed to design such a system. Process Flow Analysis and Value Stream Mapping are used as tools to understand and identify the bottlenecks and sources of problem. Immediate demand is met by implementing batch sizes based on Economic Production Quantity (EPQ). For the long term, investments are made in machinery, the factory layout is revised for better material flow, and the assembly line operations are decoupled to achieve higher flow rate. The plant ultimately adopts a Make-to-Stock system from the earlier Made-to-Order system.
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Case Analysis of Airvent Fans Co.
Airvent Fans Co. is a Harvard Business (HBR) Case Study on Technology & Operations , Texas Business School provides HBR case study assignment help for just $9. Texas Business School(TBS) case study solution is based on HBR Case Study Method framework, TBS expertise & global insights. Airvent Fans Co. is designed and drafted in a manner to allow the HBR case study reader to analyze a real-world problem by putting reader into the position of the decision maker. Airvent Fans Co. case study will help professionals, MBA, EMBA, and leaders to develop a broad and clear understanding of casecategory challenges. Airvent Fans Co. will also provide insight into areas such as – wordlist , strategy, leadership, sales and marketing, and negotiations.
Case Study Solutions Background Work
Airvent Fans Co.
case study solution
is focused on solving the strategic and operational challenges the protagonist of the case is facing. The challenges involve – evaluation of strategic options, key role of Technology & Operations, leadership qualities of the protagonist, and dynamics of the external environment. The challenge in front of the protagonist, of Airvent Fans Co., is to not only build a competitive position of the organization but also to sustain it over a period of time.
Strategic Management Tools Used in Case Study Solution
The Airvent Fans Co. case study solution requires the MBA, EMBA, executive, professional to have a deep understanding of various strategic management tools such as SWOT Analysis, PESTEL Analysis / PEST Analysis / STEP Analysis, Porter Five Forces Analysis, Go To Market Strategy, BCG Matrix Analysis, Porter Value Chain Analysis, Ansoff Matrix Analysis, VRIO / VRIN and Marketing Mix Analysis.
Texas Business School Approach to Technology & Operations Solutions
In the Texas Business School, Airvent Fans Co. case study solution – following strategic tools are used - SWOT Analysis, PESTEL Analysis / PEST Analysis / STEP Analysis, Porter Five Forces Analysis, Go To Market Strategy, BCG Matrix Analysis, Porter Value Chain Analysis, Ansoff Matrix Analysis, VRIO / VRIN and Marketing Mix Analysis.
We have additionally used the concept of supply chain management and leadership framework to build a comprehensive case study solution for the case – Airvent Fans Co.
Step 1 – Problem Identification of Airvent Fans Co. - Harvard Business School Case Study
The first step to solve HBR Airvent Fans Co. case study solution is to identify the problem present in the case. The problem statement of the case is provided in the beginning of the case where the protagonist is contemplating various options in the face of numerous challenges that Fans Layout is facing right now. Even though the problem statement is essentially – “Technology & Operations” challenge but it has impacted by others factors such as communication in the organization, uncertainty in the external environment, leadership in Fans Layout, style of leadership and organization structure, marketing and sales, organizational behavior, strategy, internal politics, stakeholders priorities and more.
Step 2 – External Environment Analysis
Texas Business School approach of case study analysis – Conclusion, Reasons, Evidences - provides a framework to analyze every HBR case study. It requires conducting robust external environmental analysis to decipher evidences for the reasons presented in the Airvent Fans Co..
The external environment analysis of Airvent Fans Co. will ensure that we are keeping a tab on the macro-environment factors that are directly and indirectly impacting the business of the firm.
What is PESTEL Analysis? Briefly Explained
PESTEL stands for political, economic, social, technological, environmental and legal factors that impact the external environment of firm in Airvent Fans Co. case study. PESTEL analysis of " Airvent Fans Co." can help us understand why the organization is performing badly, what are the factors in the external environment that are impacting the performance of the organization, and how the organization can either manage or mitigate the impact of these external factors.
How to do PESTEL / PEST / STEP Analysis? What are the components of PESTEL Analysis?
As mentioned above PESTEL Analysis has six elements – political, economic, social, technological, environmental, and legal. All the six elements are explained in context with Airvent Fans Co. macro-environment and how it impacts the businesses of the firm.
How to do PESTEL Analysis for Airvent Fans Co.
To do comprehensive PESTEL analysis of case study – Airvent Fans Co. , we have researched numerous components under the six factors of PESTEL analysis.
Political Factors that Impact Airvent Fans Co.
Political factors impact seven key decision making areas – economic environment, socio-cultural environment, rate of innovation & investment in research & development, environmental laws, legal requirements, and acceptance of new technologies.
Policy Making Impact on Airvent Fans Co.
Government policies have significant impact on the business environment of any country. The firm in “ Airvent Fans Co. ” needs to navigate these policy decisions to create either an edge for itself or reduce the negative impact of the policy as far as possible.
Data safety laws – The countries in which Fans Layout is operating, firms are required to store customer data within the premises of the country. Fans Layout needs to restructure its IT policies to accommodate these changes. In the EU countries, firms are required to make special provision for privacy issues and other laws.
Competition Regulations – Numerous countries have strong competition laws both regarding the monopoly conditions and day to day fair business practices. Airvent Fans Co. has numerous instances where the competition regulations aspects can be scrutinized.
Import restrictions on products – Before entering the new market, Fans Layout in case study Airvent Fans Co." should look into the import restrictions that may be present in the prospective market.
Export restrictions on products – Apart from direct product export restrictions in field of technology and agriculture, a number of countries also have capital controls. Fans Layout in case study “ Airvent Fans Co. ” should look into these export restrictions policies.
Foreign Direct Investment Policies – Government policies favors local companies over international policies, Fans Layout in case study “ Airvent Fans Co. ” should understand in minute details regarding the Foreign Direct Investment policies of the prospective market.
Taxation & Regulation Impact on Airvent Fans Co.
Corporate Taxes – The rate of taxes is often used by governments to lure foreign direct investments or increase domestic investment in a certain sector. Corporate taxation can be divided into two categories – taxes on profits and taxes on operations. Taxes on profits number is important for companies that already have a sustainable business model, while taxes on operations is far more significant for companies that are looking to set up new plants or operations.
Tariffs – Chekout how much tariffs the firm needs to pay in the “ Airvent Fans Co. ” case study. The level of tariffs will determine the viability of the business model that the firm is contemplating. If the tariffs are high then it will be extremely difficult to compete with the local competitors. But if the tariffs are between 5-10% then Fans Layout can compete against other competitors.
Government Scheme & Subsidies Impact on Airvent Fans Co.
Research and Development Subsidies and Policies – Governments often provide tax breaks and other incentives for companies to innovate in various sectors of priority. Managers at Airvent Fans Co. case study have to assess whether their business can benefit from such government assistance and subsidies.
Consumer protection – Different countries have different consumer protection laws. Managers need to clarify not only the consumer protection laws in advance but also legal implications if the firm fails to meet any of them.
Political System & Stability, and its Impact on Airvent Fans Co.
Political System and Its Implications – Different political systems have different approach to free market and entrepreneurship. Managers need to assess these factors even before entering the market.
Freedom of Press is critical for fair trade and transparency. Countries where freedom of press is not prevalent there are high chances of both political and commercial corruption.
Corruption level – Fans Layout needs to assess the level of corruptions both at the official level and at the market level, even before entering a new market. To tackle the menace of corruption – a firm should have a clear SOP that provides managers at each level what to do when they encounter instances of either systematic corruption or bureaucrats looking to take bribes from the firm.
Independence of judiciary – It is critical for fair business practices. If a country doesn’t have independent judiciary then there is no point entry into such a country for business.
Government attitude towards trade unions – Different political systems and government have different attitude towards trade unions and collective bargaining. The firm needs to assess – its comfort dealing with the unions and regulations regarding unions in a given market or industry. If both are on the same page then it makes sense to enter, otherwise it doesn’t.
Economic Factors that Impact Airvent Fans Co.
Social Factors that Impact Airvent Fans Co.
Technological Factors that Impact Airvent Fans Co.
Environmental Factors that Impact Airvent Fans Co.
Legal Factors that Impact Airvent Fans Co.
Step 3 – Industry Specific Analysis
What is Porter Five Forces Analysis
PESTEL stands for political, economic, social, technological, environmental and legal factors that impact the external environment of firm in Airvent Fans Co. case study. PESTEL analysis of " Airvent Fans Co." can help us understand why the organization is performing badly, what are the factors in the external environment that are impacting the performance of the organization, and how the organization can either manage or mitigate the impact of these external factors.
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