case study on giberson glass studio

16
GIBERSON GLASS STUDI O

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Giberson is well known in making different types of glasses.

TRANSCRIPT

GIBERSON GLASS

STUDIO

PRESENTED BY:- GROUP NO. A5

Chandan Pahelwani (11047) Himani Parihar (11049) Nikita Bali (11004) Sonia Dadlani (10022) Sunny Bhuva (11010)

Presented to:-Prof. Deepa Mishra

GIST OF THE CASE

Giberson is well known in making different types of glasses.

Felicia coates,an MBA student visiting giberson’s glass studio.

She shadows upon financial statement of giberson’s which were previously taken care by Mrs.giberson which was neglected after their divorce.

CONT…..

The main key concern point is that Giberson has no pricing strategy for the production.

His financial position is deteriorating.

PROBLEM

Book keeping Need of additional resources . No pricing strategy. Rapid deterioration of financial

position.

SWOT ANALYSIS

• Quality• Sales• Orders

• Extra cost(labour)

• Operating cost• Need of

additional financing

• Life span of facilities

• EnvironmentaIssues

• Loosing customers

• Trade shows• Informational

technology

Strength Weakness

Threats Opportunity

CRITERIA

Batch wise cost Production time Weekly production

OPTIONS

To maintain batch wise profit.

Maintenance of accounts.

OPERATING COST

 Item Cost per month Months Operating

CostsOffice Supplies $ 25 10 $ 250 Hand Tools/Manufacturing Supplies $ 150 10 $ 1,500 P/T Labor($5/hr) $ 100 10 $ 1000 Other Operating Costs $ 640 12 $ 7,680 Truck $ 205 12 $ 2,460

Furnace (GAS) $ 1,000 10 $10,000

Depreciation on Furnace (2 Years) $ 208 12 $ 2,500

Depreciation on Equipment (8 Years) $ 31 12 $ 375

Depreciation on Truck (5 Years) $ 142 12 $ 1,700

Depreciation on Gas Tanks (8 Years) $ 4 12 $ 50

Salary $ 2,083 12 $

25,000 TOTAL $ 52,515

TOTAL ANNUAL REVENUE

Category Unit Price #Units Sales

Pattern Glass $9 760 $6,840

Paperweights $15 400 $6,000

Wrapped Tumblers $8 1280 $10,240

Vases $25 320 $8,000

Total Annual Revenue $31,080

Revenue

Annual Loss

-

- =-

- =

$31,080

COGS(materials)

Operating Expense

Net Loss

$857 $52,515 - 22,292

ACTION PLAN

To find the relevant cost batch wise so that he can gains minimum margin profit.

Also he should maintain the books of accounts.

MATERIAL BATCH WISE COST

Cost per batch = 21.42

Total lbs. = 169

If Increase material used to 200 batch then

169 - - - 21.42

200 - - - - ?? = 25.35

Cost\Batch

Total work done in week

Total Cost

Old 21.42 40 weeks 856.8

New 25.35 40 weeks 1014

DECISION

To prepare the books of accounts. To evaluate cost as per batch because

they are doing batch wise costing.

CONTINGENCY PLAN

To increase the cost batch wise so that profit can be easily maintained.

Reduce the units in batch and keep the price same so that actual gain can be done.

THANK YOU