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bsc from book. Brief History A $1 billion subsidiary of a US auto parts
manufacturing company, Domestic Auto Parts (DAP) was at the ...
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Submitted by HelpTheLex on May 2, 2008
Category: Miscellaneous
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Brief History
A $1 billion subsidiary of a U.S. auto parts manufacturing company, Domestic Auto Parts (DAP) was at the top of its industry holding steady the number two position within its industry. Currently it has dropped to 4th place because Western Auto and Just in Time Automotive passed them up and took over the 2nd and 3rd place spots. We can deduce that Just in Time Automotives core strengths lie within its ability to be on time while keeping inventory costs at a minimum. They can be considered as following a low-cost leader approach able to get products to the customers right on time. Western Auto on the other hand operates as a differentiator. They accomplished this through the use of technology in order to produce high value products and parts. DAP lost its position at the top because it had not introduced a new product to the market in over three years. Its long term goals of being the best had suffered because of cost cutting measures that targeted a reduction in plant investment and technology upgrades focusing at maintaining short term goals. This resulted in maintenance problems in the facilities and inefficiencies in managing inventory. They need to improve the value of their products so that customers would be willing to pay a premium price. The parent company of Domestic Auto Parts hired a new CEO, Ellen Bright, so that she could turn the company around. She was assigned the task of increasing the 9% return on capital so that it would be more competitive. The parent company wanted her to achieve a 12% return-on-capital-employed (ROCE) and a growth rate high enough to catch up to its former top position. If these objectives could not be met within two years the parent company would cease and desist operations at the plant and abandon the company.
Vision Statement
DAP will become the market share leader in the auto parts manufacturing industry through the creation of a superior reputation amongst industry...
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