This is a solution for Kanthal (Harvard Business Case Study)
Kanthal Case Study Solutions
INTRODUCTION:
Kanthal is company that specializes in the production and sales of electrical resistance heating elements. Kanthal has about 10,000 customers and they produce about 15,000 items. The company consists of three divisions and these three divisions are as follows:
1)Kanthal Heating Technology - 25% global market share
2)Kanthal Furnace Products - 40% global market share
3)Kanthal Bimetals - Manufacturer of one of the few fully integrated temperature control devices
Mr. Ridderstrale, who became the …
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…Kanthal's profitability.
CONCLUSION:
Kanthal should take measures to minimize costs that are associated with the non-stocked items. The case does not show any evidence of Kanthal attempting to reduce cost activities. If the company could successfully reduce costs, this would lead to an improved operating profit margin related to stocked items. Also, Kanthal needs to focus their sales on the percent profit margin or the true bottom line contribution of each order to the company.
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