Question: read the case and discuss these points 1. problem statement 2 sentences. 2. swot analysis: strength, weakness , opportunities and threats 3. identify pros and

read the case and discuss these points 1. problem statement 2 sentences. 2. swot analysis: strength, weakness , opportunities and threats 3. identify pros and cos a. do nothing 4. recommendation 5. critical issues.

424 Pyramid Door, Inc. In November 2005, the company planning process for Pyramid Door, Inc. had just concluded, and Richard Hawly, director of sales and marketing, was re- viewing the corporate sales goal for 2006. The plan established a sales goal of $12.5 million for 2006, which represented a 36 percent increase in sales over pro- jected 2005 year-end sales.

424 Pyramid Door, Inc. In November 2005, the company planning process for Pyramid Door, Inc. had just concluded, and Richard Hawly, director of sales and marketing, was re- viewing the corporate sales goal for 2006. The plan established a sales goal of $12.5 million for 2006, which represented a 36 percent increase in sales over pro- jected 2005 year-end sales. During the planning process, a number of fellow executives had voiced con- cern over whether the distribution approach used by Pyramid Door was appro- priate for the expanded sales goal. Hawly felt that their concerns had merit and should be given careful consideration. Though he had considerable latitude in devising the distribution strategy, the final choice would have to be consistent with achieving the 2006 sales goal. His approach and action plan had to be pre- pared in a relatively short time to permit implementation in January 2006. THE COMPANY Pyramid Door, Inc. is a privately owned regional manufacturer of residential and commercial garage doors. Projected year-end company sales were $9.2 million in 2005 with a net income of $460,000 (see Exhibit 1). The company manufac- tures both insulated and noninsulated steel residential and commercial garage doors and supplies springs, cables, rollers, and side roller tracks for its products. Surveys of its dealers indicate that the majority of its doors are replacement pur- chases in the home remodeling segment of the residential housing market, with the balance of sales going to the new residential housing market and the com- mercial replacement garage door market. The company distributes its garage doors through 300 independent deal- ers that typically offer three different garage door manufacturer brands and 50 exclusive dealers that stock and sell only Pyramid doors. (Exclusive dealers often service competing brands of garage doors in their market area.) Combined, these 350 dealers service 150 markets in 11 western and Rocky Mountain states This case was prepared by Professor Roger A. Kerin, of the Edwin L. Cox School of Business, Southern Methodist University, as a basis for class discussion and is not designed to illustrate effective or ineffective handling of an administrative situation. Certain names and data have been disguised. Copyright 2010 by Roger A. Kerin. No part of this case may be reproduced without written permission of the copyright holder.

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