Analysis of Therm-Eze

Analysis of Therm-eze

Corporate Capabilities Analysis:

Finance

Mr. Mark Tanner bought Therm-eze from its inventor for a total price of $250 000 which included the Canadian manufacturing and distribution rights. He also obtained a 17 year patent on the product in Canada. Mark Tanner will spend 50 cents for the vinyl bag which will be produced by an outside vendor. The die which will be paid for by the Tanner Company will cost $1000. The sodium acetate solution which will be purchased by an Ontario Supplier will cost $1 per bag. When Mark Tanner bought the company from the inventor he received 150 000 stainless steel triggers and any additional triggers need it will cost $1.50 per unit. The felt covers and packaging will cost $0.75 per unit available from local suppliers. As well Mark Tanner pays one welder and three unskilled workers to complete the filling and sealing process a wage of $ 37.50 per hour. Also he hired Richard McKay an experienced sales person a salary of $ 40 000 per year (Preshing& Walters, N.D).

Strengths

The Tanner Company has enough money to support taking on a new venture like Therm-eze. Mr. Tanner also shows that he is understands and is fully informed on how to start a business and where the money should go. He also hired a marketing manager with experience which will help launch the product.

Weakness

Analysis of Therm-eze 2

Although Mr. Tanner has knowledge of where to put the finances in place he is not spending the time to understand the labour issues with making the product. Also he hired Richard McKay who does have experience in launching new products to the Canadian market but he may not have experience in the medical field which may cause problems in the future success of the business.

Human Resources

Mr. Tanner hired Richard McKay as the marketing manager to launch Therm-eze to the Canadian market. He has extensive sales experience which he has also introduced a number of products to the market. Mr. Tanner also hired three unskilled workers and one welder who will be filling and sealing each of the bags. Richard McKay has also suggested that he hire three sales people to help distribute the product to different locations (Preshing&Walters, N.D).

Strengths

Mr. McKay is an experienced sales executive with a wealth of knowledge in launching new products to the Canadian market. This will benefit the product development and enable the Tanner Company to successfully launch Therm-eze. He has also hired an experienced welder which will enable Therm-eze of completing the product successfully and efficiently.

Weakness

Mr. Tanner should hire more than one welder because he is not providing his employees with any time off or sick days this can cause motivation problems. Also by hiring more than one welder and having more welding machines more of the products will be completed in less time.

Analysis of Therm-eze 3

As well Mr. Tanner should hire more than three workers so they will have the opportunity with creating more task variety and significance. Also they could learn more than one skill which would help them have a variety of jobs. It will also increase productivity and create more motivation in the workplace.

Production and Manufacturing

Mr. Tanner has a mini-warehouse where he decided that the manufacturing of the Therm-eze product will be produced. This will help maintain quality control. Production of this product will take less than three weeks which will help in the change of market demand. With the three unskilled workers and one welder they can produce 150 bags per hour making 22 000 a month (Preshing&Walters, N.D).

Strengths

To make the product for changing market demand is less than three weeks which will provide them with ample amount of time for them to ship them out and provide them for sale.

Weakness

The weakness of this is that they need to be able to make more than 22 000 a month. By hiring more workers they will be able to produce double and they will be able to have enough for inventory.

Marketing

Analysis of Therm-eze 4

Mr. Tanner hired Richard McKay to market Therm-eze to the Canadian market and to find out if there is a demand for the product. Richard set up some phone surveys to the institutions to ask them if they are in need of a product like Therm-eze. He also looked