A-CAT Corporation Harvard Case Solution & Analysis

A-CAT Corporation Case Solution

Introduction

A-CAT Corporation is mid-sized electronic manufacturing company that produces electric appliances for household use in Vidarbha Region, Maharashtra and is considered as a leading electrical company of India. Its products include TV signal boosters, electronic ballasts, transformers, ratio kits, etc. ACAT's most important prestigious product includes a voltage regulator that's used for many purposes that are to be sold of 500 VA.

a-cat corp

a-cat corp

 The company grows significantly using organic growth and strategic growth which includes mergers and acquisitions and joint ventures such as joint venture of the company with Jupiter Inc., which plays a key role in the current success of the organization. It is expected that a lot of local and foreign electrical companies are operating in the same region therefore, there is intense competition in the market due to which A-Cat focuses on the rural segment.

Problem Identified:

It is expected that the management of the company is facing certain issues along with the strong competition in the market. The other main issues that the company is facing is about vendor as there are no appropriate procedures of selecting vendor which results from delays in the raw material and production processes. The management of the company is using conventional decision-making procedures due to which the company is forecasting issues on its sales demand and the requirement of raw material.

Analysis:

A CAT Corporation is anticipating an increase in transformers requirement and increase in sales based on budgeted data that is derived from monthly growth from 2006 to 2010 for Transformers requirement and is anticipated as growth from 2011 to 2013 through January to December. And sales are budgeted from 2011 to 2013 quarterly basis.

The analysis is performed by statistical tools Simulation method and exponential smoothing method for both budgeted transformers required and sales.  Statistical tools result in thorough scientific and valid analysis of survey results. There are various tools through which data can be best utilized for survey including calculating percentages in total and also using advanced tools.

Based on the research ability and collective experience, different tools are used for analyzing purpose. Statistical tools such as mean and median are selected because; mean gives the average of all selected data; standard deviation shows the comparison and dispersion around the mean; generally results are the single value that is used to evaluate the data for several months.

Statistical results are shown by results of simulation method and exponential smoothing method. Quantitative data is used in order to get a result from observations are based on counts and measurements in which both data is used such as; discrete and continuous. Discrete data shows the results with respect to increasing in sales, and continuous data is used in order to identify the average number of transformers required. According to the case, the nominal qualitative variable is household items.

Results from statistical tools such as simulation and exponential smoothing model show that; smoothing is used for time series data and reliable in every situation mostly, as company's sales growth is not increasing in the trend that's why exponential smoothing model is used. Another tools result is driven by the simulation model that shows the randomness in data as company's sales and transformers requirement are increasing with uneven percentages so as the demand of transformers is changing.

Quantitative method is used as given in the case in Exhibit 1 and two that shows the range of sales and demand of transformers and decision is taken based on company's estimation of average transformers requirement in 2011 is 1000 units and sales in 2011 of 9.8 million rupees. As units purchased, increase the sales that show strong relationship and reliable data for evaluating results from simulation model and exponential smoothing model.....................

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