Submitted by: Submitted by Philly20010
Views: 153
Words: 905
Pages: 4
Category: Business and Industry
Date Submitted: 03/10/2013 08:56 AM
Briggs and Stratton Corporation
Introduction:
• During 1980’s threat from Japanese companies with strategic intent to capture U.S. Market.
• Broadened product line, reduced costs, improved quality and invested in new plants and processes.
• Strategy: Commit major resources to traditional mass market core business and to serve other market segments with limited resources p. 564
Company History:
• Started in 1908 in Milwaukee
• First product 6-cylinder, two-cycle engine
• Motor wheel, bikes and stationary items- washing machines, garden tractors and lawn mowers.
• 1908 mass produced at 120 units per hour.
• 1953, 40% reduction for both weight and price, new plant open p. 565
• 1990 revenues reached $1 billion
• Exhibit 2: Health care and postemployment benefit costs
• 1993-1994 huge increase in current assets p. 566 $181,600,00 million
Outdoor Power Equipment Industry:
• 1995, various-sized manufacturers of finished goods and components $7.5 billion dollar industry.
• Consumers demanded higher quality products with greater horsepower at a low price.
• Not vertically integrated, cost of components accounted for 47% of the value of all finished OPE shipments.
• Honda and Toro were the only power equipment manf that were vertically integrated backward into components.
• Exhibit 7 cost and profit margin for outdoor power equipment, components were 47.6%.
• Went from wholesalers to retailers from the 1980s to the 1990s
• Home Depot, Lowe’s, Wal-mart, Kmart, Sears, and Target. P. 570
Industry Regulation:
• Prior 1992 OPE were not regulated by Consumer Products Safety Commission, compliance was voluntary.
• Standards concerned with improved product performance and safety.
• 90% of industry in compliance with voluntary standards.
• 1982 standards- increased safety restrictions walk-behind mowers, shields, deflectors and etc. p. 572
• Magnuson-Moss Act 1975, EPA, and California Air Resources Board
Competition: Domestic
• Two broad strategic...