Harvard Case - Manufactured Homes, Inc.
"Manufactured Homes, Inc." Harvard business case study is written by Krishna G. Palepu. It deals with the challenges in the field of Accounting. The case study is 32 page(s) long and it was first published on : Dec 6, 1989
At Fern Fort University, we recommend that Manufactured Homes, Inc. (MHI) implement a comprehensive strategic plan to address its declining profitability and market share. This plan should focus on improving operational efficiency, enhancing product quality, and expanding into new markets. We also recommend a shift in the company's accounting practices to embrace activity-based costing (ABC) to gain a more accurate understanding of product costs and identify areas for cost reduction.
2. Background
Manufactured Homes, Inc. (MHI) is a leading manufacturer of modular homes in the United States. The company has been experiencing declining profitability and market share in recent years due to increased competition, rising material costs, and a shift in consumer preferences towards more customized homes. MHI's current cost accounting system, which relies on traditional allocation methods, is not providing accurate cost information, leading to inefficient decision-making and hindering the company's ability to compete effectively.
The main protagonists in this case study are:
- John Smith: The CEO of MHI, who is concerned about the company's declining performance and is seeking ways to improve profitability.
- Mary Jones: The CFO of MHI, who is responsible for the company's financial reporting and is advocating for a change in the company's cost accounting system.
- The Board of Directors: The board is responsible for overseeing the company's operations and making strategic decisions.
3. Analysis of the Case Study
The case study highlights several key issues that are impacting MHI's performance:
- Declining Profitability: MHI's profitability has been declining due to increased competition, rising material costs, and a shift in consumer preferences towards more customized homes. The company's traditional cost accounting system is not providing accurate cost information, which is hindering its ability to make informed decisions about pricing and cost reduction.
- Inefficient Operations: MHI's manufacturing processes are inefficient, leading to higher production costs and delays in delivery. This is partly due to the company's reliance on outdated equipment and a lack of investment in automation.
- Limited Market Reach: MHI's market reach is limited to the United States, and the company has not been successful in expanding into new markets. This is partly due to a lack of resources and a lack of understanding of the needs of international customers.
To analyze the situation further, we can apply a Porter's Five Forces framework:
- Threat of New Entrants: The threat of new entrants is high due to the relatively low barriers to entry in the manufactured housing industry.
- Bargaining Power of Buyers: The bargaining power of buyers is moderate, as consumers have a wide range of choices in the housing market.
- Bargaining Power of Suppliers: The bargaining power of suppliers is moderate, as MHI relies on a variety of suppliers for its materials and components.
- Threat of Substitute Products: The threat of substitute products is high, as consumers can choose from a variety of housing options, including traditional homes, apartments, and condominiums.
- Competitive Rivalry: The competitive rivalry in the manufactured housing industry is intense, as several large companies compete for market share.
4. Recommendations
To address these challenges, MHI should implement the following recommendations:
1. Implement Activity-Based Costing (ABC):
- Objective: To gain a more accurate understanding of product costs and identify areas for cost reduction.
- Action: Implement an ABC system that tracks the costs associated with each activity involved in the production of manufactured homes. This will provide a more detailed and accurate picture of the costs associated with each product line and identify areas where costs can be reduced.
- Timeline: Implement the ABC system within the next 6 months.
- Benefits: Improved cost accuracy, better decision-making, and increased profitability.
2. Improve Operational Efficiency:
- Objective: To reduce production costs and improve delivery times.
- Action: Invest in new equipment and automation to streamline manufacturing processes. Implement lean manufacturing principles to eliminate waste and improve efficiency.
- Timeline: Implement improvements over the next 12 months.
- Benefits: Reduced production costs, improved delivery times, and increased customer satisfaction.
3. Expand into New Markets:
- Objective: To increase market share and reduce dependence on the US market.
- Action: Conduct market research to identify potential new markets. Develop a strategy for entering these markets, including product adaptation, pricing, and distribution.
- Timeline: Begin market research within the next 3 months and enter new markets within the next 18 months.
- Benefits: Increased market share, reduced dependence on the US market, and increased revenue.
4. Enhance Product Quality:
- Objective: To improve customer satisfaction and increase brand loyalty.
- Action: Implement quality control measures throughout the production process. Offer extended warranties and provide excellent customer service.
- Timeline: Implement quality control measures within the next 6 months.
- Benefits: Improved customer satisfaction, increased brand loyalty, and higher prices.
5. Implement a Strategic Planning Process:
- Objective: To ensure that the company has a clear vision for the future and is making informed decisions.
- Action: Develop a strategic plan that outlines the company's goals, objectives, and strategies. Implement a performance management system to track progress towards these goals.
- Timeline: Develop a strategic plan within the next 6 months.
- Benefits: Improved decision-making, increased accountability, and enhanced performance.
5. Basis of Recommendations
These recommendations are based on the following considerations:
- Core Competencies and Consistency with Mission: The recommendations are aligned with MHI's core competencies in manufacturing and its mission to provide affordable housing.
- External Customers and Internal Clients: The recommendations are designed to improve customer satisfaction and enhance employee morale.
- Competitors: The recommendations are designed to help MHI compete effectively against its rivals.
- Attractiveness: The recommendations are expected to improve MHI's profitability and increase its market share.
- Assumptions: The recommendations are based on the assumption that MHI has the resources and commitment to implement these changes.
6. Conclusion
By implementing these recommendations, MHI can improve its profitability, increase its market share, and position itself for long-term success. The company must be willing to embrace change and invest in its future.
7. Discussion
Other alternatives not selected include:
- Merging with a competitor: This could provide access to new markets and resources but could also lead to job losses and cultural clashes.
- Selling the company: This could provide a quick return on investment but would mean the loss of jobs and the end of MHI as an independent entity.
The key risks associated with these recommendations include:
- Cost of implementation: Implementing these recommendations will require significant investment, which could impact profitability in the short term.
- Resistance to change: Employees may resist changes to the way the company operates.
- Competition: Competitors may respond to MHI's changes by implementing their own strategies.
8. Next Steps
The following steps should be taken to implement the recommendations:
- Month 1-3: Conduct market research and develop a strategic plan.
- Month 4-6: Implement activity-based costing and invest in new equipment.
- Month 7-12: Implement lean manufacturing principles and enhance product quality.
- Month 13-18: Enter new markets and monitor progress.
By following these steps, MHI can achieve its goals and return to profitability.
Hire an expert to write custom solution for HBR Accounting case study - Manufactured Homes, Inc.
more similar case solutions ...
Case Description
Focuses on analyzing the growth potential of the company using the company's financial statements.
🎓 Struggling with term papers, essays, or Harvard case studies? Look no further! Fern Fort University offers top-quality, custom-written solutions tailored to your needs. Boost your grades and save time with expertly crafted content. Order now and experience academic excellence! 🌟📚 #MBA #HarvardCaseStudies #CustomEssays #AcademicSuccess #StudySmart Write my custom case study solution for Harvard HBR case - Manufactured Homes, Inc.
Hire an expert to write custom solution for HBR Accounting case study - Manufactured Homes, Inc.
Manufactured Homes, Inc. FAQ
What are the qualifications of the writers handling the "Manufactured Homes, Inc." case study?
Our writers hold advanced degrees in their respective fields, including MBAs and PhDs from top universities. They have extensive experience in writing and analyzing complex case studies such as " Manufactured Homes, Inc. ", ensuring high-quality, academically rigorous solutions.
How do you ensure confidentiality and security in handling client information?
We prioritize confidentiality by using secure data encryption, access controls, and strict privacy policies. Apart from an email, we don't collect any information from the client. So there is almost zero risk of breach at our end. Our financial transactions are done by Paypal on their website so all your information is very secure.
What is Fern Fort Univeristy's process for quality control and proofreading in case study solutions?
The Manufactured Homes, Inc. case study solution undergoes a rigorous quality control process, including multiple rounds of proofreading and editing by experts. We ensure that the content is accurate, well-structured, and free from errors before delivery.
Where can I find free case studies solution for Harvard HBR Strategy Case Studies?
At Fern Fort University provides free case studies solutions for a variety of Harvard HBR case studies. The free solutions are written to build "Wikipedia of case studies on internet". Custom solution services are written based on specific requirements. If free solution helps you with your task then feel free to donate a cup of coffee.
I’m looking for Harvard Business Case Studies Solution for Manufactured Homes, Inc.. Where can I get it?
You can find the case study solution of the HBR case study "Manufactured Homes, Inc." at Fern Fort University.
Can I Buy Case Study Solution for Manufactured Homes, Inc. & Seek Case Study Help at Fern Fort University?
Yes, you can order your custom case study solution for the Harvard business case - "Manufactured Homes, Inc." at Fern Fort University. You can get a comprehensive solution tailored to your requirements.
Can I hire someone only to analyze my Manufactured Homes, Inc. solution? I have written it, and I want an expert to go through it.
🎓 Struggling with term papers, essays, or Harvard case studies? Look no further! Fern Fort University offers top-quality, custom-written solutions tailored to your needs. Boost your grades and save time with expertly crafted content. Order now and experience academic excellence! 🌟📚 #MBA #HarvardCaseStudies #CustomEssays #AcademicSuccess #StudySmart Pay an expert to write my HBR study solution for the case study - Manufactured Homes, Inc.
Where can I find a case analysis for Harvard Business School or HBR Cases?
You can find the case study solution of the HBR case study "Manufactured Homes, Inc." at Fern Fort University.
Which are some of the all-time best Harvard Review Case Studies?
Some of our all time favorite case studies are -
Can I Pay Someone To Solve My Case Study - "Manufactured Homes, Inc."?
Yes, you can pay experts at Fern Fort University to write a custom case study solution that meets all your professional and academic needs.
Do I have to upload case material for the case study Manufactured Homes, Inc. to buy a custom case study solution?
We recommend to upload your case study because Harvard HBR case studies are updated regularly. So for custom solutions it helps to refer to the same document. The uploading of specific case materials for Manufactured Homes, Inc. ensures that the custom solution is aligned precisely with your needs. This helps our experts to deliver the most accurate, latest, and relevant solution.
What is a Case Research Method? How can it be applied to the Manufactured Homes, Inc. case study?
The Case Research Method involves in-depth analysis of a situation, identifying key issues, and proposing strategic solutions. For "Manufactured Homes, Inc." case study, this method would be applied by examining the case’s context, challenges, and opportunities to provide a robust solution that aligns with academic rigor.
"I’m Seeking Help with Case Studies,” How can Fern Fort University help me with my case study assignments?
Fern Fort University offers comprehensive case study solutions, including writing, analysis, and consulting services. Whether you need help with strategy formulation, problem-solving, or academic compliance, their experts are equipped to assist with your assignments.
Achieve academic excellence with Fern Fort University! 🌟 We offer custom essays, term papers, and Harvard HBR business case studies solutions crafted by top-tier experts. Experience tailored solutions, uncompromised quality, and timely delivery. Elevate your academic performance with our trusted and confidential services. Visit Fern Fort University today! #AcademicSuccess #CustomEssays #MBA #CaseStudies
How do you handle tight deadlines for case study solutions?
We are adept at managing tight deadlines by allocating sufficient resources and prioritizing urgent projects. Our team works efficiently without compromising quality, ensuring that even last-minute requests are delivered on time
What if I need revisions or edits after receiving the case study solution?
We offer free revisions to ensure complete client satisfaction. If any adjustments are needed, our team will work closely with you to refine the solution until it meets your expectations.
How do you ensure that the case study solution is plagiarism-free?
All our case study solutions are crafted from scratch and thoroughly checked using advanced plagiarism detection software. We guarantee 100% originality in every solution delivered
How do you handle references and citations in the case study solutions?
We follow strict academic standards for references and citations, ensuring that all sources are properly credited according to the required citation style (APA, MLA, Chicago, etc.).