Domestic Auto Parts_AE2

2013 DOMESTIC PARTS COMPANY CASE ANALYSIS

DOMESTIC AUTO PARTS CASE FINANCIAL 1. What is that the shareholders want? Shareholders prime aim is growth of the firm in terms of i. Improving Return on Capital Employed (Target 12%) ii. Increasing topline revenues by 50% through innovation and customer relationships iii. 90% asset utilization on an upgraded asset base iv. Lowest cost operations v. Regain high quality position

CUSTOMER 1. What is that want? i. On time delivery and delivery as per specifications ii. Superior, technology-sophisticated products

2. How does DAP create value for them? i. Providing creative, new and improved products ii. Understanding the need of customers and translate by continuous communication and productive dialogue iii. Increasing customer relationships 3. Who are the customers? Customers for DAP are original auto equipment manufacturers. PROCESS 1. What internal processes are most important for creating value for DAP’s shareholders and customers? i. ii. iii. iv. v.

Supplier management, manufacturing and product delivery have to be better managed Investing in process improvements and new and upgraded equipment. Creating strong distribution process Improving supplier relationships Aligning the organization through just in time technology

LEARNING GROWTH 1. What specific skill and capabilities do the people of DAP need to excel the critical internal process identified above? a. Employees must value change b. Reskilling most parts of the organization c. Learning new technology and tools

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