Written Analysis of Case Alden Products

Written Analysis of Case | September 22

2013

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| Alden Products, Inc |

Submitted By: Mahwish Danish (MBA 1)

Submitted to: Dr. Shakeel Sadiq Jajja

Contents

Alden Products Inc. 2

API’s Growth Target 3

Problem Symptoms 4

Underlying Root Cause 4

Fixing the Root Cause 5

Consequences 5

Suggestions for Capacity Expansion 6

Exhibit 1 7

Exhibit 2 8

Exhibit 3 8

Alden Products Inc.

Alden Products Inc. (API) is a privately owned corporation based in Peoria, Illinios. API specializes in a wide variety of personal care products such as skin creams, shampoos, lotions, deodorants, toiletries etc. API’s competitive strategy revolves around high quality, innovation and uniqueness. API’s product line provides the consumers with high quality and enjoys the status of premium products, with prices set up about 15% higher from the market.

API believes in capturing new opportunities and coming up with new products which effectively satisfies the changing customer needs is critical to surviving in a maturing market. Due to its premium product producer’s status, API faces competition from international giants such as Procter & Gamble, Unilever and Gillette.

The markets targeted by API include US, Europe and export markets of Africa and Middle East with manufacturing based in US and Europe only. Sales of products differed greatly from country to country within Europe highly due to tastes and personal case preferences, popularity of products and distribution of income levels. The organizational structure promotes reasonable distribution of power with the country managers having considerable freedom to add, drop, reposition of emphasize products based on their understanding of local market needs, however major marketing and production decisions had to be ran over with and approved by the executive Vice President for Alden-Europe Mr. Genet.

API operates two major manufacturing plants in Europe, one based a t Buxbridge England and another plant...