The Morrison Company

3622 words 15 pages
FIN 485 – Brief Case #5
The Morrison Company
December 5, 2013
Case Overview/Key Issues
The Morrison Company is a manufacturer of Radio Frequency Identification Tags (RFID). These tags can be scanned from small distances away and are used to track items in the shipping and supply chain process. The Morrison Company provides RFIDs to companies in the Pharmaceutical and Retail industries. The company has seen a large increase in sales over the past year, which has forced production to increase as well. As production levels increased, problems began to arise in the production process that hindered Morrison’s ability to run the company at the most efficient and effective level. Shauna Breen was recently hired as the new Director of
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The UHF tags are also quickly outdated due to advances in technology, forcing companies to accept losses on outdated, unsellable products, and forcing companies to spend money on research and machines necessary to produce new tags. Another con of the industry is that nearly 85% of orders require customization. This means companies need to spend extra time and money on this phase of the production process, which cuts into earnings. Morrison struggles to keep up in this industry. While their patented production process does allow them to produce tags with exceptional performance, that is not what is needed by the consumers. Also this process and the machines it uses are outdated at Morrison, and struggle to keep up with the fast paced, ever changing technology of the UHF tags. The biggest issue that Morrison has in this industry is with the customization. While they did add technology in 2009 that helped expand their customization options, it did not help to maintain production levels. The customization phase of the production process at Morrison is the biggest bottleneck in the process, and is the reason why products and orders are being delayed. With nearly 85% of the retail product line requiring some sort of customization, Morrison’s capacity is being taken up by these lower profit products.
d. Morrison should attempt to focus their efforts on the pharmaceutical market. They should not completely

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