Harvard Case - Ehmke Manufacturing Company: Strategic and Marketing Dilemma-Make or Buy
"Ehmke Manufacturing Company: Strategic and Marketing Dilemma-Make or Buy" Harvard business case study is written by Dennis Paris, Sheri Lambert, Jennifer Sundstrom-Fitzgerald. It deals with the challenges in the field of General Management. The case study is 16 page(s) long and it was first published on : Mar 20, 2023
At Fern Fort University, we recommend Ehmke Manufacturing Company continue to manufacture its core product line in-house while outsourcing the production of the new, specialized product line. This strategy leverages Ehmke's existing strengths and expertise while mitigating risks associated with entering a new market segment.
2. Background
Ehmke Manufacturing Company is a successful manufacturer of standard industrial equipment. The company faces a strategic dilemma: whether to manufacture a new, specialized product line in-house or outsource production. This decision hinges on various factors, including the company's core competencies, market potential, and resource constraints.
The main protagonists in this case study are:
- John Ehmke: The company's CEO, who is concerned about the potential for growth and profitability.
- Tom Ehmke: John's son and the company's VP of Operations, who is more inclined towards outsourcing.
- The Board of Directors: Responsible for making the final decision and ensuring the company's long-term viability.
3. Analysis of the Case Study
Strategic Analysis:
- SWOT Analysis: Ehmke possesses strong internal strengths, including a skilled workforce, established manufacturing processes, and a loyal customer base. However, the company faces external threats from competition and potential market volatility. The new product line presents both opportunities for growth and challenges in terms of resource allocation and expertise.
- Porter's Five Forces: The industrial equipment market is characterized by moderate competition, low threat of new entrants due to high barriers to entry, and moderate bargaining power of buyers and suppliers. The new product line faces a higher threat of substitutes due to the specialized nature of the market.
- Competitive Advantage: Ehmke's competitive advantage lies in its proven manufacturing capabilities, strong customer relationships, and brand reputation. The company needs to assess how these assets can be leveraged in the new product line.
Financial Analysis:
- Cost Analysis: A detailed cost analysis should be conducted to compare the costs of in-house production versus outsourcing. This analysis should consider fixed costs, variable costs, economies of scale, and potential learning curve effects.
- Investment Analysis: Ehmke needs to evaluate the capital investment required for in-house production versus the potential costs of outsourcing. This includes factors like equipment acquisition, facility upgrades, and training costs.
- Profitability Analysis: Projecting the profitability of the new product line is crucial. This involves considering market demand, pricing strategies, and potential margins.
Marketing Analysis:
- Market Research: Thorough market research is essential to understand the target market for the specialized product line, including customer needs, competitive landscape, and market size.
- Marketing Strategy: Ehmke needs to develop a marketing strategy that effectively positions the new product line, targets the right customer segment, and differentiates it from competitors.
- Branding: The company needs to consider how the new product line will be branded and whether it should be under the existing Ehmke brand or a separate brand.
Operational Analysis:
- Manufacturing Processes: Ehmke should assess its existing manufacturing capabilities and identify any potential bottlenecks or limitations in producing the new product line.
- Supply Chain Management: The company needs to evaluate its existing supply chain and determine if it can effectively support the new product line. This includes sourcing raw materials, logistics, and inventory management.
- Quality Management: Maintaining high quality standards is crucial for both the existing product line and the new product line. Ehmke should ensure that its quality management system is robust and can adapt to the new product requirements.
4. Recommendations
Short-Term:
- Conduct a comprehensive feasibility study: This study should include a detailed financial analysis, market research, and operational assessment.
- Develop a clear outsourcing strategy: If outsourcing is chosen, Ehmke should identify potential partners, negotiate contracts, and establish clear performance metrics.
- Invest in employee training: Ehmke should invest in training its workforce to adapt to the new product line, whether it is manufactured in-house or outsourced.
Long-Term:
- Continue to manufacture core product line in-house: Ehmke's existing expertise and infrastructure make it cost-effective and efficient to continue producing its core product line in-house.
- Outsource the production of the new, specialized product line: Outsourcing allows Ehmke to leverage external expertise and resources, mitigate risks associated with entering a new market, and focus on its core competencies.
- Develop a strategic partnership with the outsourcing partner: Ehmke should establish a long-term relationship with the outsourcing partner to ensure consistent quality and reliable supply.
- Invest in innovation and product development: Ehmke should continue to invest in research and development to stay ahead of the competition and explore new product opportunities.
5. Basis of Recommendations
These recommendations are based on the following factors:
- Core competencies and consistency with mission: Ehmke's core competency lies in manufacturing standard industrial equipment. Focusing on this core competency while outsourcing the new product line allows the company to leverage its strengths and minimize risks.
- External customers and internal clients: Ehmke's existing customers value its reliability and quality. By maintaining its core product line in-house, the company can continue to satisfy these customers while exploring new market opportunities.
- Competitors: Outsourcing the new product line allows Ehmke to compete effectively with specialized manufacturers who may have a greater expertise in that market segment.
- Attractiveness: The financial analysis should demonstrate the attractiveness of the chosen strategy in terms of profitability, return on investment, and long-term growth potential.
6. Conclusion
By leveraging its existing strengths and embracing strategic partnerships, Ehmke Manufacturing Company can successfully navigate the 'make or buy' dilemma. Continuing to manufacture its core product line in-house while outsourcing the new, specialized product line allows the company to maximize its competitive advantage, mitigate risks, and achieve sustainable growth.
7. Discussion
Alternatives not selected:
- Fully in-house production: This option carries higher risks due to the potential for increased costs, resource constraints, and a learning curve in a new market.
- Fully outsourced production: While this option minimizes risk, it could lead to a loss of control over quality, production processes, and intellectual property.
Risks and key assumptions:
- Finding a reliable outsourcing partner: Ehmke needs to carefully vet potential partners to ensure they meet quality, cost, and delivery standards.
- Maintaining control over intellectual property: Ehmke must ensure that any outsourcing agreements protect its intellectual property and trade secrets.
- Market demand for the new product line: The success of this strategy depends on the market demand for the new product line.
8. Next Steps
- Implement the feasibility study: Complete the feasibility study within the next three months.
- Select an outsourcing partner: Initiate the selection process for an outsourcing partner within the next six months.
- Negotiate contracts and establish performance metrics: Finalize contracts and establish performance metrics with the chosen outsourcing partner within the next nine months.
- Launch the new product line: Introduce the new product line to the market within the next twelve months.
By following these steps, Ehmke Manufacturing Company can successfully navigate its strategic and marketing dilemma and achieve its long-term growth objectives.
Hire an expert to write custom solution for HBR General Management case study - Ehmke Manufacturing Company: Strategic and Marketing Dilemma-Make or Buy
more similar case solutions ...
Case Description
Ehmke Manufacturing Company, Inc., a technical fabric products company established in 1929 in Philadelphia, United States, was facing challenges attracting and retaining employees. In the first half of 2022, issues such as critical open positions and an exponential number of resignations were being experienced across numerous industries around the globe. On June 1, 2022, the company's chief executive officer met with his entire management team to discuss his company's dilemma and various options, including the reputation of the company's brand. He had to decide how to manage the increasing workforce challenge, despite unprecedentedly high demand for his company's products and services. His company's growth projections, from a relatively small company to a medium-size international business, did not account for customer disappointments due to product order delays, especially considering that the company manufactured products used for critical search-and-rescue, military, and other governmental applications in the United States and allied countries. The chief executive officer had three options: accept current conditions, increase wages and benefits, or outsource production.
🎓 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 - Ehmke Manufacturing Company: Strategic and Marketing Dilemma-Make or Buy
Hire an expert to write custom solution for HBR General Management case study - Ehmke Manufacturing Company: Strategic and Marketing Dilemma-Make or Buy
Ehmke Manufacturing Company: Strategic and Marketing Dilemma-Make or Buy FAQ
What are the qualifications of the writers handling the "Ehmke Manufacturing Company: Strategic and Marketing Dilemma-Make or Buy" 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 " Ehmke Manufacturing Company: Strategic and Marketing Dilemma-Make or Buy ", 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 Ehmke Manufacturing Company: Strategic and Marketing Dilemma-Make or Buy 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 Ehmke Manufacturing Company: Strategic and Marketing Dilemma-Make or Buy. Where can I get it?
You can find the case study solution of the HBR case study "Ehmke Manufacturing Company: Strategic and Marketing Dilemma-Make or Buy" at Fern Fort University.
Can I Buy Case Study Solution for Ehmke Manufacturing Company: Strategic and Marketing Dilemma-Make or Buy & Seek Case Study Help at Fern Fort University?
Yes, you can order your custom case study solution for the Harvard business case - "Ehmke Manufacturing Company: Strategic and Marketing Dilemma-Make or Buy" at Fern Fort University. You can get a comprehensive solution tailored to your requirements.
Can I hire someone only to analyze my Ehmke Manufacturing Company: Strategic and Marketing Dilemma-Make or Buy 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 - Ehmke Manufacturing Company: Strategic and Marketing Dilemma-Make or Buy
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 "Ehmke Manufacturing Company: Strategic and Marketing Dilemma-Make or Buy" 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 - "Ehmke Manufacturing Company: Strategic and Marketing Dilemma-Make or Buy"?
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 Ehmke Manufacturing Company: Strategic and Marketing Dilemma-Make or Buy 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 Ehmke Manufacturing Company: Strategic and Marketing Dilemma-Make or Buy 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 Ehmke Manufacturing Company: Strategic and Marketing Dilemma-Make or Buy case study?
The Case Research Method involves in-depth analysis of a situation, identifying key issues, and proposing strategic solutions. For "Ehmke Manufacturing Company: Strategic and Marketing Dilemma-Make or Buy" 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.).