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Questions to be asked. Critical analysis of Competitive Strategies. Strategic Operations Decisions.

Cost:
x Competing on quality than on price. x Culling low profit products and poorer costumers.

Quality
x x x x x Extensive focus. Choice of finishes. Skilled workforce. Outsourcing die manufacturing to specialized companies. Maintaining composition of aluminum according to the specifications.

Dependability
x Customers could depend on Indalex for the timely delivery of products, even if the order was placed at short notice. x Knowing the customers business well. x One stop supplier.

Innovativeness
x Specialized presses in order to reduce the machine idle time (Process Velocity). x Design innovativeness in the Anodizing plant, which made it one of the most efficient ones in the U.K.

Time
x Low response time.

Flexibility
x Efficient workforce management enables them to increase of decrease the output depending on market demand

CAPACITY

Extrusion
Capacity 9000 MT

Surface Finishes
Capacity 4950 MT

Fabrication

Capacity 300 MT

FACILITY

Extrusion

Surface Finishes
4 Anodizing Plants

Fabrication

3 Presses

1 Unit

WORKFORCE
Extrusion Surface Finishes
109 Workers

Fabrication

91 Workers

14 Workers

111 Workers in allied activities. Top management was a small group of 10. Sales team consisted of 10 members.

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Employed just about 100 salaried employees and 325 hourly workers. Wage rate of GBP 1.5/Hours. Two shift schedule, offering a considerable amount of overtime. Voluntary shifts of 5 hours each on Saturdays and Sundays, at 1.3 times the normal wage rate.

Compensation and pension policy was better than average compared to similar factories in the U.K.

Resentment among workers regarding the wages, also resulted in a 10 day strike.

Closer identity with the company as 70% of the workforce lived within 10 miles of the plant.

Promoting within the organization and hiring new personnel on the basis of staff and workers.

QUALITY

Extrusion

Surface Finishes
Skilled foremen were responsible for scheduling, quality and cost.

Fabrication

Outsourcing Dye making to specialized makers.

VENDORS AND VENDOR RELATIONS

Since Indalex was the first aluminum extruder, it had essentially caused the auxiliary services required by extrusion companies to locate near it.

PRODUCTION SYSTEMS
Marketing team surveyed top 20 to 30 percent of the customers to determine their likely requirements. Based on this the production plans were generated. Preparation of profit plan was predicted on target growth and pre tax profit per annum. Plan was prepared by each operating management and then passed at the territorial level and finally by the RTZ executive management.

ORGANIZATION STRUCTURE
RTZ Group of Companies
Pillar Group of Companies Indalex Ltd. 47 Group Companies

Extrusion

Surface Finish

Fabrication

RTZ Executive Management Territorial Level Executive Directors of Companies

perating Managers

Foremen

Workers

Extrusion Advantages
Increase in capacity by 15002000mt.

Anodizing
Increase in capacity by 2000mt.

Re-Melting
Less market risk.

Results in better bottom line.

Reducing dependability on others.

Disadvantages Min. 33% increase in capacity, with uncertainty in future demand. rastically increase in the capacity of certain billets while relaxing that of the others. Requires compromising of marketing strategy and company reputation. Marketing Risk. No personal resources available.

luggish economy might not accommodate the increase in capacity.

New marketing problems.

Particulars Cost Involved Estimated Earnings Earnings/Ton

Extrusion(in GBP) 1,000,000 216,000 120

Anodizing(inGBP ) 800,000 450,000 225

ReMelting (in GBP) 857,000 300,000 59.2