Steel Works

Steel Works Inc.

Steel Works Inc specializes in several types of services including: The Custom division and the Specialty division.

The most important responsibility of Custom division is to help to develop each customer’s own products. Despite all the success company has achieved, even attracted several biggest companies in the United States, they couldn’t run out of some difficulties. For example, it takes a lot of time for them and too much human resources is to be spent to design a new product, but the main problem is that they can’t sell it to other companies even when a product is no longer at leading-edge. At last, the company is sure that they need to keep a lot of warehouses and high inventory in order to satisfy their clients.

In addition, the other service department of the Steel Works Inc, the Specialty division, apparently has a different vision of the value of the other department. They’re the ones out in the marketplace selling every day and bringing in 67% of this company’s revenue, and they’re quite upset that the Custom division gets a lot of attention. Also Specialty division attempts to manufacture its products in a single plant, by producing the products in a rotating sequence.

There is also a suggestion from consultant to discontinue some of the products and reduce the inventory amounts and warehouses. But all this was totally rejected.

We consider that, Steel Works has a great reputation: they produce hi-tech products and always take care about their customers. This is the reason why it attracts such a big number of customers all around the globe, but there are some problems with that. The products they work with, have to be designed exclusively, which makes the number of goods seem huge, and the majority of customers are not that big. It means that the possibility of increase in demands is extremely low. In conclusion, according to exhibits 1-2, it’s obvious, that Steel Works might have spent too many efforts to earn small...