Scribd
Upload
169 views6 pages

Kenmetel Electronics: The Company Strategy Was Selling High-Margin Quality Products

- Kenmetel Electronics was a niche retailer facing declining market share as its competitive advantage eroded. - It relied on high-margin quality products but competitors were improving perceived quality through branding and packaging. - The company's board received internal information focused on finances and operations, but external information on competitors and the market was unstructured, inconsistent, and untimely.

Uploaded by

Idham Idham Idham
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
169 views6 pages

Kenmetel Electronics: The Company Strategy Was Selling High-Margin Quality Products

- Kenmetel Electronics was a niche retailer facing declining market share as its competitive advantage eroded. - It relied on high-margin quality products but competitors were improving perceived quality through branding and packaging. - The company's board received internal information focused on finances and operations, but external information on competitors and the market was unstructured, inconsistent, and untimely.

Uploaded by

Idham Idham Idham
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
You are on page 1/ 6

Kenmetel Electronics

Kenmetel Electronics was a high-street retailer

Conditions:
- Operating in a niche market
- Has a strategy of selling high-margin quality products
- No-high market share and starting to decline
- Information given to the board focused more on Internal Information.
- External information was given unstructured, inconsistent and untimely.

The company strategy was selling high-margin quality products.

Perspectiv
Strategic Priority
es

Financial

High margin for quality products

Customer
Offer new quality product and brand

Internal Business
Process Develop new quality product

Learning & Growth


Improve skill & technology
nternal Information.
nsistent and untimely.

lity products.

Goal (Strategic Objective) Key Performance Measures

Achieve higher performance Operating income


Achieve higher return & eficiency ROI and ROA
See revenue from new product % of revenue growth
Liquidity measure & target Cash flow from operation
Increase profitability Reduction in operating expenses
Increase eficiency Inventory turn over
Survive in major market Market share
Add margin through image Marketing spend at % of sales
Delight the targete customers Customer satisfaction survey
Increase revenue by repeat customer Customer retention & complaints
Build customer recognition Brand index
Chalenge the competitor product Market for the next product
Compete on product reliability Product defect rate
Competitive logistic capability Stock replenisment cycle times
Develop new product % of revenue from new product

Staff value Employee retention


Maximize productivity Output per head
Skill development No. training per head
Competency Skill & technology have
Provide external & future information Information availability index
Targets Initiatives

5% margin improvement
10% revenue growth
Maintain the liquidity need

Improved new product quality


Improved new product design

Develop 25% new product

Improve skill and training


Use the new technology

Develop new research data


The provision of competitor strategy and product information helped to identify the cause of th
The competition had been slowly increasing the perceived quality of their product using improv
competitive advantage was being eroded.

Internal
Information
Past
Numeric
Benchmark the financial
performance of their business
against that of similar Financial Text
companies in the same
industry.
Big data

Numeric No. of repeat sales and No. of


The NFI did not took at the customer complaints
company's products in
isolation but look at all Non-Financial Text Faulty products returned
competitors and products in
the marketplace
Big data

Lowest level

Traditional management information

Question SCM
1 Topic 8
2 Topic 1, reading A
3 Topic 4, reading A
4 Topic 4, reading D
5 Topic 5, reading B
6 Topic 10, reading A
7 Topic 6, reading A
Topic 9, reading B
information helped to identify the cause of tha falling market share.
erceived quality of their product using improved packaging and branding and the company's

Internal External
Future Past Future
Competitor sales analysis and
total market size
Supplier profitability and
market share
Economic indicators:
disposable income, inflation
and demography

Press reviews of products Advances in technology

> 75% postive reviews % New Product Innovation

SBA
1 Topic 1 reading A
2 Topic 2, reading C/E
3 Topic 2, reading B/E
4 Topic 5, reading B/C
5 Topic 6, reading A, halaman 7
6 Topic 12, reading D
7 Topic 8, reading D
To compare your
company’s performance to
objectives set out at the
beginning of the year,
Increase in Trend based on a long-term
strategic plan.
Increase in Profitability To review financial data
once a month
Economic Performance To conduct more thorough
analysis every quarter

You might also like