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    Polar Sports, Inc - Analysis

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    jordanstack
    The document analyzes Polar Sports, Inc's proposal to transition to level production from its current seasonal model. The seasonal fashion/skiwear market is volatile with short product lifespans and high manufacturer failure rates. Level production would give Polar Sports more flexibility to scale production quickly, require lower capital investment, improve inventory turnover, and allow faster reaction to market trends while retaining knowledge. Global Consulting estimates level production could save Polar Sports $406,518 annually by smoothing cash flows and making operations more predictable and consistent.

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    Polar Sports, Inc - Analysis

    Uploaded by

    jordanstack
    875 views15 pages
    The document analyzes Polar Sports, Inc's proposal to transition to level production from its current seasonal model. The seasonal fashion/skiwear market is volatile with short product lifespans and high manufacturer failure rates. Level production would give Polar Sports more flexibility to scale production quickly, require lower capital investment, improve inventory turnover, and allow faster reaction to market trends while retaining knowledge. Global Consulting estimates level production could save Polar Sports $406,518 annually by smoothing cash flows and making operations more predictable and consistent.

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    Business Case Analysis

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    The document analyzes Polar Sports, Inc's proposal to transition to level production from its current seasonal model. The seasonal fashion/skiwear market is volatile with short product lifespans and high manufacturer failure rates. Level production would give Polar Sports more flexibility to scale production quickly, require lower capital investment, improve inventory turnover, and allow faster reaction to market trends while retaining knowledge. Global Consulting estimates level production could save Polar Sports $406,518 annually by smoothing cash flows and making operations more predictable and consistent.

    Copyright:

    © All Rights Reserved
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    875 views15 pages

    Polar Sports, Inc - Analysis

    Uploaded by

    jordanstack
    The document analyzes Polar Sports, Inc's proposal to transition to level production from its current seasonal model. The seasonal fashion/skiwear market is volatile with short product lifespans and high manufacturer failure rates. Level production would give Polar Sports more flexibility to scale production quickly, require lower capital investment, improve inventory turnover, and allow faster reaction to market trends while retaining knowledge. Global Consulting estimates level production could save Polar Sports $406,518 annually by smoothing cash flows and making operations more predictable and consistent.

    Copyright:

    © All Rights Reserved
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    of 15

    Polar Sports, Inc - Analysis

    Prestige Worldwide
    Global Consulting Group

    Why were here


    Global consulting firm specializing in
    optimization of manufacturing
    operations
    Analyze the proposal for level
    production

    The Problem
    The volatile nature of the
    fashion/skiwear market.
    Competitive Market
    Trend-based
    Short selling season
    Short product lifespan
    High failure rate amongst manufacturers

    The Solution
    For Polar Sports, Inc to become more
    flexible in their business

    What does flexibility look


    like?

    The ability to scale production quickly


    Low levels of capital investment
    High inventory turnover
    Ability to react to market trends quickly
    Retention of knowledge capital
    Ability to meet Cash-flow requirements

    Possible Solutions

    External production
    Level Production
    Limit existing product lines
    Niche markets

    Decision Making Matrix


    Insert Graphic here

    Level Production Analysis


    The Bottom Line ..
    Projected Savings of $406,518
    with move to level production

    Level Production Analysis


    Areas in which it affects your business
    Cash Flow Greater Flexibility
    Inventory & Storage Higher inventory being held resulting in higher
    storage costs
    Accounts Payable (Operation) Level production means more
    predictable and consistent cycles for payables
    Accounts Payable (Financing) - $4 million in revolving credit will
    Interest Expense increased interest expense due to financing
    operations when income is not being generated
    Interest Income reduction in interest income due to less cash
    (profit) being held in accounts
    Tax implications More complex
    COGS (Savings from operations reflected in COGS)

    Level Production Analysis


    Highlights
    Cash Flow Greater Flexibility
    Seasonal

    Level

    Implementation Plan
    Gantt chart

    Finance Options

    Indicators and Contingency

    Summary

    The issue
    The solution
    Why it was good
    Questions

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