Value of US door market
Order ID 53563633773 Type Essay Writer Level Masters Style APA Sources/References 4 Perfect Number of Pages to Order 5-10 Pages Description/Paper Instructions
Value of US door market
FALL 2018
Take Home Exam#1 Name: _____________
Answer the Take Home Exam question below. It is the first of 2 THE’s. For course grading purposes the higher grade will be weighted 60% and the lower grade 40%.
You are to submit electronically via CANVAS. The exam is open book, open note and may be attempted on an individual basis or in cooperation with one other fellow student. In the latter circumstance equal contribution is assumed. While you may consult written materials, you are not to discuss your answers with anyone other than your collaborator, if there is one. If you quote substantially from a source it should be cited! Submission of your exam attests to your acceptance of these conditions. Please submit your exam in a unified file, i.e. not a single question in a file. You may submit a scanned copy but .JPEG is not acceptable. MSWord is also welcomed! Include your name on the file itself. Best of luck!
QUESTIONS TO ANSWER (1-3):
The following questions are based on the ABC Door case. In each response explain your reasoning.
- How effectively does ABCcompete in the non-exclusive dealerships? Use market share analysis!
- How effectively does ABCcompete in exclusivedealerships? Compare with served market data.
- Compare the difference in effectiveness of ABCin exclusive and non-exclusive dealerships. What in-store market share would you expect for ABCin the non-exclusive dealers? Hypothesize as to the reason(s) for the discrepancies from the observed market shares in the 2 distribution modes. (This is a creative process, there is no “right” answer).
CASE:
ABC SLIDING GLASS DOOR
ABC Glass is a small company which specializes in the manufacture of sliding glass doors. These doors are predominantly installed as a replacement item in existing residential item in existing residential housing although ABC does participate in new residential construction.
Selected Industry Data
Value of US door market (at manufacturer Prices) = $90B
Value of US sliding door market (5% of the above) = $4.5B
Value of the sliding door market in ABC’s served market = $348.5M
Total # of dealers in ABC’s served market = 3002
Market research indicates that less than 10% of prospective glass door buyers (i.e. homeowners) could name any brand of sliding glass doors. The vast majority of glass door buyers had their new doors installed by the dealer. Most buyers obtained at least 2 bids before installing sliding glass doors. The dealer choice dominated brand selection.
The Company
The most recent Income Statement for ABC Glass doors is given below:
Net Sales $9,200,000
CGS $6,900,000
Gross profit $2,300,000
SGA (fixed) expenses $1,840,000
Net Profit $ 460,000
DISTRIBUTION:
MSA’s in the ABC served market = 150
# of exclusive markets (dealers) = 50 (50)
Sales in Exclusive Markets = 70% of total = $6.44M
# of non-exclusive markets (dealers) = 100 (300)
Sales in non-Exclusive Markets = 30% of total = $2.76M
The typical breakdown of sliding glass door in-store market shares in non-exclusive dealers is:
60% for the leading brand;
30% for the second brand;
10% for the third brand.
As noted above, ABC distributes its doors to 150 locations (MSA’s) in the western United States. It has 2 distinct patterns that have evolved to represent a distribution strategy.
Pattern#1: “reciprocal exclusivity”. This means that ABC sells through a single dealer in a MSA, and this dealer in turn sells only ABC brand sliding glass doors. ABC has 50 such markets.
Pattern#2: “mutual non-exclusivity”. In this circumstance ABC has 3 independent dealers in each market. Each dealer carries 3 brands of sliding doors. ABC has 100 of such markets.
Note: the above are somewhat simplified but are sufficient for our purpose.
SALES OBJECTIVE
ABC management has set the ambitious sales goal of $12.5M for the upcoming fiscal year (beginning September 1, 2018). This represents a 36% increase in sales from the current year. The forecast growth rate in the sliding door market next year is estimated at 2.4%.
RUBRIC
QUALITY OF RESPONSE NO RESPONSE POOR / UNSATISFACTORY SATISFACTORY GOOD EXCELLENT Content (worth a maximum of 50% of the total points) Zero points: Student failed to submit the final paper. 20 points out of 50: The essay illustrates poor understanding of the relevant material by failing to address or incorrectly addressing the relevant content; failing to identify or inaccurately explaining/defining key concepts/ideas; ignoring or incorrectly explaining key points/claims and the reasoning behind them; and/or incorrectly or inappropriately using terminology; and elements of the response are lacking. 30 points out of 50: The essay illustrates a rudimentary understanding of the relevant material by mentioning but not full explaining the relevant content; identifying some of the key concepts/ideas though failing to fully or accurately explain many of them; using terminology, though sometimes inaccurately or inappropriately; and/or incorporating some key claims/points but failing to explain the reasoning behind them or doing so inaccurately. Elements of the required response may also be lacking. 40 points out of 50: The essay illustrates solid understanding of the relevant material by correctly addressing most of the relevant content; identifying and explaining most of the key concepts/ideas; using correct terminology; explaining the reasoning behind most of the key points/claims; and/or where necessary or useful, substantiating some points with accurate examples. The answer is complete. 50 points: The essay illustrates exemplary understanding of the relevant material by thoroughly and correctly addressing the relevant content; identifying and explaining all of the key concepts/ideas; using correct terminology explaining the reasoning behind key points/claims and substantiating, as necessary/useful, points with several accurate and illuminating examples. No aspects of the required answer are missing. Use of Sources (worth a maximum of 20% of the total points). Zero points: Student failed to include citations and/or references. Or the student failed to submit a final paper. 5 out 20 points: Sources are seldom cited to support statements and/or format of citations are not recognizable as APA 6th Edition format. There are major errors in the formation of the references and citations. And/or there is a major reliance on highly questionable. The Student fails to provide an adequate synthesis of research collected for the paper. 10 out 20 points: References to scholarly sources are occasionally given; many statements seem unsubstantiated. Frequent errors in APA 6th Edition format, leaving the reader confused about the source of the information. There are significant errors of the formation in the references and citations. And/or there is a significant use of highly questionable sources. 15 out 20 points: Credible Scholarly sources are used effectively support claims and are, for the most part, clear and fairly represented. 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