Essays on Manufacturing Strategies Case Study

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1995 The Hoffmann Tobacco Company with Director Curt Muller: The main market is producing cigarettes for overseas and domestic market. The company had many competitors abroad. Imperial Tobacco Company, BAT and Rothmans companies, Philip Morris and R. J. Reynolds Cigarettes companies in Germany were the major competitors. Pressure of reducing cigarettes cost To reduce size of manufacturing cigarettes in local markets and in United Kingdom 1960s analysis Threat and weakness: Manufacturing performance of Hoffmann Tobacco Company was off target. Strategy: To increase local market share and invest abroad in West Africa, Europe and Middle East.

The Hoffmann Tobacco Company applied lean production as a manufacturing strategy in cigarettes manufacturing. Opportunity: New management style in which Tobacco Workers Union and this company made changes to enable capital investment and cooperation of employees. Work plan: The Company continuously restructured its work systems, investment processes and made changes to methods of working. Open communication was ensured throughout activities of manufacturing and distribution. Results: The Hoffmann Tobacco Company increased its market share of selling cigarettes in United Kingdom. The new management style made the employees to be more innovative.

The company could now manufacture 8000 cigarettes per minute. 1952 analysis Threat and weakness: Worldwide realization of effects of smoking to one’s health leading to low cigarettes sales and low profit by Hoffmann Tobacco Company. Opportunity: Promotions and advertisements in local and new market areas. Strategy: The Hoffmann Tobacco Company reduced prices of its cigarettes to attract more customers. Plan action: Provision of own cigarettes labels that are based on Hoffmann Tobacco Company’s methods of marketing and investment in Middle East as well as Europe. The company identified market areas that had high profits and increased advertisements of its cigarette products. Results: Hoffmann Tobacco Company maintained high revenue from selling cigarettes in local market.

It also increased its overseas investment in many countries. 1992 analysis Threat and weakness: The sales from new cigarettes manufacturing plants were affected by relentless recession in Europe and some Asian nations. The newly established cigarettes manufacturing plants did not operate well. Opportunity: There was new market in countries where additional plants had been established. Strategy: The Hoffmann Tobacco Company identified executives that had international experience to lead and manage newly established manufacturing plants based on its management style. Work plan: Recognition of all the causes of poor revenue generation in some manufacturing plants before elimination of leadership and management in those plants and hiring executives from within the location of the plant.

Results: Revenue resulting from overseas investment rebounded. The cigarette manufacturing operations in Asia and Europe increased profit after recession. 1976 analysis Threat and weakness: The sale of cigarettes dropped. This could cause firing of some employees. Opportunity: Its competitors; BAT, Rothmans and Imperials Tobacco Companies were not competitive enough.

Strategy: Hoffmann Tobacco Company increased product quality through packaging. Action plan: The company imported cigarettes from Europe at a low price and redeployed some employees to newly created plants in Europe that was generating high revenue. Results: Some employee were sent out in Asian and European plants and retained even during low sales in local plants. This marketing strategy enabled the company not to laying off workers.

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