Professional Documents
Culture Documents
SECTION: - A
COURSE CODE:-EPGP-11-201
Submitted By Yogendra Singh Rathore
Scientific Glass, Inc. (SG) established in 1992, was a privately held company
and a midsize player in specialized glassware industry providing specialized
laboratory and research facilities.
Their focus on providing durable products, innovative design and superior
customer service.
. SG is a fast growing organization with annual sales of $86 million for the
year ending 2009 and $65 million in 2008.
The global scientific glassware market had estimated annual sales is $2
billion approx and annual sales increasing 3% to 5% in last few years.
SG main market in North American and in Europe there is 20% market so they
targeting Germany to cover Europe market.
SG product variety of organizations is Pharmaceutical companies,
Biotechnology firms, hospitals, academic and government research lab,
environment testing and industrial research.
SG manufactures more than 3000 different standardized products ranging
from less than $3 to more than $300 and the company decided to establish
its direct sales force along geographical.
SG had several many competitors in thus glassware industry like Thermo
Fisher Scientific and Ace glass.
Both company are larger and smaller and they often offered broad ranges of
laboratory glassware bus had limited offerings in the others categories of
laboratory equipment.
SG knows market demand and more –creative product design and lower
lifecycle costs.
Most competitors now offered different features also brought new several
trends in the market that had impact on the firm’s strategy and execution .
Increased entry of low-end competitors
Relative saturation in the market
Increasing the number of laboratories in overseas.
The company’s compensation program to achieve 99% customer fill rate
made most of the warehouse managers to keep higher inventory levels than
required.
The policy of 99% fill rate is a point to be considered while 92% being the
industry standard. Moreover, the company’s inventory control policies to not
to exceed 60 days supply are also regularly violated.
All these aspects are affecting the companies plan for international
expansions and company’s target debt to capital ratios are increased to 40%.
Rising shipping cost and inventory holding
cost
ROP with safety Stock 37.20 109.30 197.20 14.90 39.50 68.20
Thank You