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¶ … solutions issues raised case perspective global chain strategies located e-Text, Global Operations Logistics: Text Cases: • Case
ISOL case study
The ISLO + Group is an international organization focused on the creation of insulation products, serving customers in numerous industries and markets. The company operates facilities in Spain, France and Italy, with the highest sales volumes being registered in France, and the lowest in Italy.
Currently, the company is looking to increase the volumes of its production in an effort to further enhance its financial results. In this order of ideas, the developments to be engaged in by the firm throughout the duration of the following year (1994 as according to the case) are focused on an increase in the sales volumes, coupled with an increase in the quality of the services delivered by the firm, with the purpose of increasing customer satisfaction and also boosting sales.
Identification of issues raised
As it has been mentioned before, the ISOL + Group seeks to increase its revenues by stimulating sales and boosting the quality of the customer service. In both endeavors nevertheless, the company encounters specific issues, which are hereby named. In the case if sales increases, this objective would be difficult to be attained due to the low production capacity...
In the case of service quality improvement, the issues are pegged to the already existent weakness of the firm in increasing production, meaning that its resources would be allocated in this direction. With the organizational efforts focused on production, the quality of the services might suffer.
3. Analysis and discussion of issues
The volume of production is expected to be gradually increased throughout the following five years (up until 1997 and 1998) at all manufacturing plants in France, Spain and Spain. The increases in volumes expected vary from one country to the other, referring primarily to the following figures:
An expected increase in sales volumes in France by 5 per cent
An expected increase in sales volumes in Spain by 270 per cent
An expected increase in sales volumes in Italy by 250 per cent (case).
These sale increases are expected to generate direct increases in company revenues and profits, but the problem identified is that the projected growth model is not sustainable in France.
In the case of the service quality issue, this is raised by the shortage of production capacity in France. In other words, when the plant is already battling insufficient infrastructure and resources…
References:
Case 8 -- 3: ISOL, in the Global Operations Chapter 8.
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