Ask Marketing Management Expert

IWC RONA Assignment

Situation

Windows installed where there are risks of hurricanes, tornados, and other forms of wind damage must meet certain strength requirements. Unfortunately, these requirements involve thicker, heavier, and more expensive reinforced glass. Given the nature of this glass, there are also limits on the size and shapes of the windows that can be made with it. For window companies (like IWC, the custom window company discussed in class) these window strength requirements sometimes limit the types of windows it can design and install in commercial buildings constructed in wind-prone areas.

Your company, WinSafe, has developed a film that can be applied to regular glass allowing it to meet window strength requirements. Rather than buying the heavy reinforced glass required in wind-prone areas, along with specialized framing materials and related hardware, custom window companies can purchase the film, apply it to regular glass, use their regular framing materials and hardware, and fulfill customers' (generally commercial building contractors) structural and window strength requirements. There is no difference in visibility with the film. Given that regular glass is lighter and the film can cover the largest sheets, window companies do not face the same design and installation limits they would with regular wind-resistant glass. This flexibility allows them to install a greater variety of window shapes and sizes in wind-prone areas. Though there is a cost to the film, it is offset by savings on the more expensive wind-resistant glass. There is minimal equipment required to apply the film, though there might be a minor impact on the window company's fixed assets due to the purchase of this equipment.

IWC's current financials appear below. Since it does a fair amount of work on the hurricane-prone east coast and in "tornado alley" in the Midwest, wind resistant windows make up about 35% of IWC's business. Similar businesses have shown that switching to the film yields a saving of about 8% (savings on no longer using the more expensive wind-resistant glass netted against the cost of the film). Total inventory savings (window companies no longer need to stock wind resistant glass in addition to regular glass, nor the framing materials and other accessories needed with the heavier glass) range from 1 to 3% depending on the window company's inventory systems.

Revenue

$4,516

Cost of goods sold (materials and labor)

3,523

Inventory

723

Total expenses

971

Fixed assets

1,942

Accounts receivable

392

Other current assets

758

Assignment

In Excel:

Create a RONA spreadsheet using the format used in class using IWC's financials above as a baseline.

Copy your RONA spreadsheet in a new tab (be sure to label your tabs!) and demonstrate the impact of IWC's savings on the wind-resistant windows portion of their business.

Copy your baseline RONA spreadsheet and create a third spreadsheet demonstrating the impact of the lower inventory costs only on the wind-resistant portion of IWC's business.

Finally, create a fourth spreadsheet reflecting the combined results of the cost and inventory savings on IWC's RONA.

In a separate Word document, answer the following questions:

What are the implications of these analyses for IWC? How would you use the RONA results in marketing WinSafe's film to IWC?

Where else do you see a potential RONA impact in IWC's switch to the film? Be specific about how IWC could save money (like the class exercise, "reduce cost of goods sold," without explaining how won't cut it). Where would you reflect this impact on the RONA spreadsheet?

What do you think the result would be? How would you use this result? (Hint: You may wish to put some "dummy" numbers into your IWC spreadsheet to see what the impact of any other proposed changes would be.)

Format

This assignment will be submitted to Blackboard in two pieces: your Excel spreadsheet with tabs for each part of question 1 (note that this must be a "working" spreadsheet with formulas in the cells wherever possible-no credit will be given for a spreadsheet used like a word processor with numbers only in the cells), and a Word document with your answers to both parts of question 2. Your Word document should not be longer than two pages.

Attachment:- rona.rar

Marketing Management, Management Studies

  • Category:- Marketing Management
  • Reference No.:- M91990140
  • Price:- $50

Priced at Now at $50, Verified Solution

Have any Question?


Related Questions in Marketing Management

Question 1 application of conceptstime value of money2

Question: 1. Application of concepts/time value of money? 2. Which is more detrimental to a firm, pricing your product or service too high, or pricing your product or service too low? 3. Discuss the role of demographics ...

Question imagine that you are in the market for a new

Question: Imagine that you are in the market for a new career. How can the marketing research process apply to your career search? Think of a specific topic you need to learn more about that relates to your career as a o ...

Question strategic marketing planintroductionthis

Question: STRATEGIC MARKETING PLAN INTRODUCTION This assignment entails development of a comprehensive strategic marketing plan for a new product or service that is ready to "go to market". A Project Template is provided ...

Qestion ready set strive gen z is comingby janet adamy

Question: Ready, Set, Strive : Gen Z Is Coming By Janet Adamy | Sep 07, 2018 TOPICS: Consumer Behavior, External Marketing Environment, Targeting SUMMARY: About 17 million members of Generation Z are now adults and start ...

Question in your marketing plan you should1establish a

Question: In your Marketing Plan, you should: 1. Establish a Mission Statement and a Vision Statement for your new organization. 2. Briefly describe basic services it has been providing during the first six months of ope ...

Question 1review the terminal course objectives accessed by

Question: 1. Review the Terminal Course Objectives, accessed by clicking on the "Course Information" tab at the top of your screen, scrolling down to the "Course Objectives" and then selecting View class objectives. How ...

Question read the worddoc first and answer those following

Question: Read the word.doc first and answer those following question 1. Provide a list of at least five pieces of information that airlines have about their customers, and for each, explain how that information might he ...

In this unit you are asked to produce a public relations

In this unit you are asked to produce a Public Relations Campaign Proposal document and an essay that explains the theory behind your planned approach to the Proposal task. You may base your assessment on the suggested s ...

Question 1200 words on your favorite retailer and their

Question: 1200 words on your favorite retailer and their major competitor as discussed in class. This should focus on the different elements that make up the retail strategy of the companies and other factors that appeal ...

Question bulltype of paper assignmentbullsubject

Question: • Type of paper Assignment • Subject Other • Number of pages 1 • Format of citation Other • Number of cited resource s0 • Type of service Writing from scratch First, choose a piece of art from any genre (music, ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Why might a bank avoid the use of interest rate swaps even

Why might a bank avoid the use of interest rate swaps, even when the institution is exposed to significant interest rate

Describe the difference between zero coupon bonds and

Describe the difference between zero coupon bonds and coupon bonds. Under what conditions will a coupon bond sell at a p

Compute the present value of an annuity of 880 per year

Compute the present value of an annuity of $ 880 per year for 16 years, given a discount rate of 6 percent per annum. As

Compute the present value of an 1150 payment made in ten

Compute the present value of an $1,150 payment made in ten years when the discount rate is 12 percent. (Do not round int

Compute the present value of an annuity of 699 per year

Compute the present value of an annuity of $ 699 per year for 19 years, given a discount rate of 6 percent per annum. As