IIM Indore | Polaroid Corporation: European Distribution system | Logistics Management system | | Submitted to | Prof. S. Venkatramanaiah | | Group 2 | AludaiyaarasuAsvin VMohan M S Prabu PRajasekar VijayaraghavanSrinivasan DK.M.Venkatraj | Synopsis: Polaroid Corporation, headquartered in Cambridge, Massachusetts, was a company marketed a wide variety of instant photographic products for consumers and industries. After the deregulation of US motor industry consolidation of the warehouses in US took place, which resulted in an improved service level and reduced costs. Overwhelmed by the consolidation results, the management wanted to consolidate the subsidiaries’ warehouses in the Europe to a direct distribution. …show more content…
Opposition from Unions in different subsidiaries against the layoff could cause serious problems like high severance package and possible strikes Benefits Of Centralized Warehouse system: By implementing Centralized warehouse system, Polaroid would achieve a net annual savings of $5.7 Million. Savings through reduction of workforce will be $2.5 Million and Warehouse rental savings will be $1 Million Factors supporting Central Warehousing: 1. Successful implementation in US and savings derived 2. Forthcoming liberalization of cross-border transportation 3. Efforts by Logistic providers for pan-European service capabilities 4. Post liberalization transportation in Europe would reduce by 5-25% Analyzing Service Demand pattern: Country | Photographic Dealers | Hypermarkets/Retailers Warehouse | Wholesalers | Special Markets | Direct service | Nature of Service Demand (Remarks) | France | 70% | 20% | 10% | - | - | 1) Shipment of products directly to individual 2) Direct delivery to retail outlets &retail establishments | Germany | 0% | 85% - 90% | 10%-15% | - | - | 1) Highly demanding compared to other European subsidiary 2) Strongly opposed late or incomplete orders | Italy | 45% | 10% | 40% | 5% | | Characterized most flexible | UK | - | 20% | 45% | 20% | 35% | Some of Accounts considered extremely demanding | From above table we could infer that Germany and France are seeking high
The problem in this case is concerned with Eastman Kodak losing its market share in film products to lower-priced economy brands. Over the last five years, in addition to being brand-aware, customers have also become price-conscious. This has resulted in the fast paced growth of lower priced segments in which Kodak has no presence.
Polaroid’s overall growth strategy was to be the number one and only instant photography company through the invention of it’s own technology in its own laboratories. “Growth objectives are a key part of an organization’s overall strategic plan. Almost all strategic plans deal with the size the company wishes to be in the future” (Human Resource Management pg. 110). One of the ways in which Polaroid planned to be the only instant photography company—in turn would also make it the greatest—was through 533 patents. “Polaroid is still characterized by many as a company that hold too tight a grip on its patents” (Human Resource Management pg. 130). Polaroid’s strategic plan was always to stick with their one invention, improve on it’s technology, and target the sole market. This affected HR planning and strategy because Edwin H. Land did not want to enter other markets; Land wanted Polaroid to be about instant photography. The decision to stay in only one market affected HR from doing what they are suppose to do. It prevented them from being creative or innovative.
Different retailing businesses have very different distribution methods based on the types of product that they sell, some arguably more effectively than others.
Describe the methods that will be used to sell and distribute the products or services
Because of the hasty decision to implement the change there is a very high risk of employee resistance to change. The upper management had no investment in the decision and will feel a resentment and lack of control that could trickle down through the organization. The dangers her are that original companies will become infected with a negative attitude toward the new parent company causing
In Europe, Polaroid was organized into 12 subsidiaries, each operating a separate warehouse to serve its national market, and the largest subsidiaries reside in France, Germany, Italy, and the United Kingdom. The International Distribution Service Center (IDSC) shipped products to the major national subsidiaries several times a week and the non-major subsidiaries received shipments once a week.
The company sells its products through two separate channels of distribution. Each is treated as a
Another change could be mergers and take-overs which can sometimes leave employees feeling uncertain about their future with the company, loss of trust and experience staff leaving.
Fujifilm was able to being exporting film and optical products after World War II ended, they primarily focused on South American and Asia. There was a great demand
The first collective employee reaction management will see, whether the entire reduction in force plan is revealed, would be that of the union(s) being up in arms that there will be any employees getting the pink slip. The on the job efficiencies and reduction in productiveness could occur if employees become disenfranchised and are left wondering on whether they have a job tomorrow. Managers and employees who generally have a minor trust issue normally will withdraw from each other, which will result in work team dysfunctional behaviors and creativity will stalemate. If left to its own devices, strikes, walkouts, or employee sabotage could become the extreme results of poorly constructed philosophy, policies, and management approaches.
Because the product was leaving the warehouse and getting to stores quicker, I was able to reduce the storage space which was an initial problem so the increase of costs because of it decreased. The stores showed a moderate increase in profit.
Therefore, the costs of rent, permits, and licenses will remain the same because revenues do not affect them. Instead, the property owners set the rent prices with little consideration of the revenue of the enterprise, whereas the government sets the costs of permits and licenses based on policy and not the revenue of the business. On the other hand, a revenue increase signals an increase in operations of the company. Consequently, the costs of electricity and discounts will also increase because of their dependence on operational activities at the enterprise. Lastly, regarding salaries, the fixed component of it, comprising of managerial and other costs will remain the same. However, the variable component of the salaries will increase as the revenue increases. Similarly, as for the repair and maintenance, the fixed component will remain the same as the variable component increases. The sum effect will be an increase in mixed costs, which will be lower than variable costs due to the effect of fixed costs within the wider mixed
Availability: Products are dispersed through their strategically placed store front, or can be delivered inside of the
Lastly, company may showed the sign of losing trust of employees. According to worker union news, employees in blue scope requiring higher pay eventually go for a strike.
Hopefully the majority of the employees will be able to understand what is driving the proposal and accept it as a necessary measure that will help stabilize the company. It is likely that not everyone will be open to the proposal and it could foster some resentment from various employees. This may be a necessary evil given the situation but it is believed that on the