Cyclone Tire Company Harvard Case Solution & Analysis

These departments will work together and the results would be generated based on the efficiency of their operations.

The procurement department has one employee which is thepurchasing officer; the manufacturing department has5 employees, 1 production manager and 4 production workers. The production workers will report to the production manager who will report to the COO. The sales department has one employee which is a sales associate; the customer service department has a service man. Cyclone Tire Company is starting its operations with a total of 12 employees.

Procurement department would be working on purchasing raw material from suppliers. As it is being initiated therefore, different suppliers would be tested in order to consequent the best supplier with high quality raw materials in the lowest prices. The main goal of this department would be selecting different suppliers in order to get the highest quality material.

There would be 4 employees working under manufacturing department. This department would be manufacturing different tires. Moreover, the number of employees under this department would be hired with the increase in demand and production requirements. The manufacturing would be done through machineries therefore; all the employees would be technology experts.

Quality control department would be working after manufacturing of tires. This department would be checking if the manufacturing is done in an appropriate manner and in the right way. Moreover, if there would be any fault in manufacturing, this department would have sent it back in order to deliver high quality products to the customers.

Sales department would be responsible for sales delivery to customers in timely-manner. They are responsible for making sure all sales logs are maintained. Shipping will also be handled by this employee as well as customer service responsibilities includinganswering calls from customers, issue resolution or escalation to the respective department, and maintaining the company’s support website. The sales officer is also responsible for issuing sales invoices and money collection.

Marketing department of the company would be responsible for all sorts of advertising and promotion plans. The marketing associate will report directly to the chief operations officer and president, and will work closely with the sales department to ensure advertising plans areeffective.

Customer service department would be providing after sales services to customers such as installingand uninstalling of tires. Moreover, this department would also help other customers to repair or maintain their vehicles such as car tires.

Title 2018 2019 2020 2021
President $54,600 $55,692 $56,805.84 $57,941.96
COO $49,500 $50,490 $51,499.80 $52,529.80
Production Manager $38,000 $38,760 $39,535.20 $40,325.90
Purchasing Officer $23,500 $23,970 $24,449.40 $24,938.39
Sales Officer $23,500 $23,970 $24,449.40 $24,938.39
Marketing Associate $23,500 $23,970 $24,449.40 $24,938.39
Human Resource Associate $23,500 $23,970 $24,449.40 $24,938.39
Accountant $26,900 $27,438 $27,986.76 $28,546.50
Production Worker $23,500 $23,970 $24,449.40 $24,938.39

Table 1 Salary Table of Cyclone Tire Company

Barriers to entry

The term “Barriers to entry” refers to the obstacles that make it difficult for the company to enter into the market.

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