1st Group Assignment - Regal Marine analysis on product. PDF

Preview

Summary

Regal Marine analysis on product....

Description

Operations Management – MGMT 2500 – RLB Group Assignment – Regal Marine Professor: Gabriela Moreira Group 1.8:

1. Huy Nguyen

N01325988

2. Thai Huy Hoang

N01319370

3. Beau Deguire

N01153793

4. Bushira Namaganda N01248674

1. State Regal Marine’s mission in your own words (Question from textbook) Regal Marine's mission is to provide luxury performance boats to customers around the globe by creating goods that can be considered unique from the competition. Regal Marine operates on the strategy of differentiation. This means that they aim to create products and supply services that stand out or are different in some ways. Regal Marine achieves this through constant innovation, unique features, and quality assurance. Regal Marine's mission in its essence is about providing its goods globally through its ability to maintain a very high brand recognition and value recognition for the goods and services it supplies. (Heizer, 2020) 2. Identify the strengths, weaknesses, opportunities, and threats that are relevant to the strategy of Regal Marine.

3. How would you define Regal’s strategy? According to the case of Regal Marine in the textbook, the company is using the strategy of differentiation to compete with hundreds of competitors in the boat business. As following the strategy of differentiation, Regal mainly focuses on constant innovation, unique features and high quality and thus making distinctive and high value products to its customers. Regal’s strategy of differentiation is supported by computer-aided design (CAD) and a large number of its suppliers to maintain continuous innovation, cost and time reduction and to ensure flexibility and perfect parts of its products. Importantly, one of its effectiveness in the boat industry is that establishment of effective dealers for Regal’s global presence in a marketplace. 4. How would each of the 10 operations management decisions apply to operations decision making at Regal Marine? As we know, there are a total of 10 operation management decision areas that play an important role in the decision making process of a firm. Regal Marine seems to have address these areas excellently, which afterwards results in the thrive-off in their business: (Why buy a Regal, FullPerformance) 1. Design of goods and services: 

One of Regal Marine’s main objectives is to constantly position its customer service and customer satisfaction rate at the top. Regal Marine took over the first rank in customer service by JD Power and Associates.



At Regal Marine, all same-model products look exactly the same.



“Exceptional service goes hand in hand with exceptional product.”



Regal Marine was one of the very first boat builders to ever be awarded the ISO Certification - the world recognition for product’s quality and service.



Unlike other boat building companies, Regal Marine utilizes the long-lasting characteristics of gelcoat to make the color always as good as new.

2. Managing quality: 

Regal Marine manages to ensure the quality of their products is alway beyond high-end and beyond customers’ expectations.



Every model, product is obligated to be examined in the same process regardless of classes. Every product will be inspected very regularly in the making process to ensure the quality is above and beyond.



Regal Marine was one of the very first boat builders to ever be awarded the ISO Certification - the world recognition for product’s quality and service.

3. Process and capacity design. 

The boat building process is carried out under strict monitor and examination.



Regal Marine prioritizes the safety designation for each product. Specifically, a number of items are always installed in the boat for safety purposes: transontrailering lights, extended swim platforms, deep cockpits and walk-thru transom.



The sophisticated FasTrac Hull design that earned the company the IMTEC innovation award.

4. Location: The company headquarters in Orlando, Florida. However, its dealerships are distributed all around the world, mostly in Canada and The United States. 5. Layout strategy: 

The company makes attempts to produce each of their products with the same standard. Products that are the same model are very alike with each other.



Regal Marine always updates its products’ layout in order to meet the trend and please the customers’ demand.

6. Human resources and job design. 

According to Tim Kuck, each of his employees is very honest, full of dignity and integrity, skilled and well trained. (Strategy at Regal Marine, class learning material)



Each job is well described. A strict collaboration between jobs is necessary.

7. Supply chain management: 

The company is in partnership with a huge number of its suppliers. (Heizer, Operation Management)



Build up a good partnership leads to that Regal can “profitably produce a product line of 22 boats” (Heizer, Operation Management)



Have over 120 dealers around the world ready to provide service to over 40 countries. (Strategy at Regal Marine, class learning material)

8. Maintenance: 

Regal Marine ensures that all of their products are continuously innovated, and maintained. (Heizer, Operation Management)



Every product will be tested before being sent to customers.

9. Intermediate and short-term scheduling: 

All same-model products undertake the same process. Each process will take place at a specific station.

10. Inventory: 

A number of their inventory are lifetime warranty.



The company builds up good relationships with its inventory suppliers.

Questions posted on Blackboard: 1. How is global strategy in evidence from their website? Regal Marine’s main strategy is differentiation. The layout of the business website plays an important role as it is the determinant to captivate potential global customers. Regal Marine, therefore, optimized their website to make it friendly, captivating and easily accessible to navigate. They also have clear titles as to whether customers reside within North America or Internationally. On the website, pictures of multiple models and products are introduced to provide online visitors with a wide variety of choices. An online brochure will be forwarded directly and instantly to their email address should they demand more details or models. Online visitors will have an opportunity to locate themselves by using the « location » bar at the top of the website. Right below the location bar, there is a mini black global map with multiple cyan dots on it representing the locations of the company’s dealerships. These dealerships are located densely in North America and the United States, while a slightly less number of them are in Asia, Africa and Europe. By addressing the country in which the « potential customers » are living in along with their email address, a dealer will certainly contact them to discuss any possibilities. The website, on top of that, is in English which is quite readable to a large number of people all around the world. On the website, the company contact information is attached. Their Facebook account, Twitter account, Linkedin account, Instagram account are linked directly to the website, which is quite a modern and simple approach to market globally. Last but not least, there is also a series of awards, journals about the company’s high quality products and top services mentioned

on the website. This is a smart way to significantly build up their credibility in customers globally. (Regal Marine, company website) 2. What sort of global operations strategy do they seem to be adopting; international, multidomestic, global, or transnational? Regal Marine utilizes a Global Operations Strategy. This is reflected in its majority export business where ⅓ of all sales are completed overseas. The company uses centralized operating decisions with headquarters coordinating the standardization and learning between facilities. In fact, the company offers a JIT inventory model where parts are moved through a series of stations at their manufacturing plant (now located in Orlando, Florida) before being completed and shipped to various dealers or consumers. Much like Harley Davidson, or Caterpillar the products remain the same in each market. As such, they simply utilize various dealers to sell their products in each international location. This results in high cost reduction but a low response. (Heizer, 2020) 3. Does their facility location reflect their global strategy? Regal Marine attracts local and international customers looking to find top of the line boats that have unique features. Furthermore, navigating through Regal Marines website international customers are able to search for a dealer near them in order to customize their desired boat. Moreover, Regal Marine’s headquarters are currently located in Orlando, Florida, United States. By placing their headquarters in Orlando, Florida, this location is popular among different demographics which attracts a variety of target markets looking to invest in a boat. Furthemore majority of their dealerships are located in the United States, North America and the rest in other

countries which reflects their global strategy of reaching their customers wherever they are located. Regal Marine has multiple locations in different countries, by expanding into different markets this gives the brand contemporary benefits such as new potential revenue, foergin investments opportunities, expanding the Regal Marine brand image also diversifying talent acquisition within the dealerships. 4. How much of their business is done globally? Over ⅓ of all sales are again completed overseas (Jay Heizer, 2020). This represents a major Global business sales presence and a strong dependency on their global markets. However, these are sales. Much of the businesses core operations are run through their plant in Orlando, Florida. This means that many of their products are imported goods sold through dealers. Meaning much of their actual sales business and CRM is run from authorized third-party dealers. 5. How does their workforce reflect their global strategy? As aforementioned, Regal Marine is adopting a Global Operations Strategy. This strategy is found advantageous because the end products are similar and standardized throughout the world and thus leading to cost reduction and generating economies of scale. Indeed, all of Regal’s products follow a similar production process from $14 000 5.7-metre boat to the $500 000 13metre Commodore yacht (Heizer, Render & Munson, 2020). In terms of cost and time saving, Regal Marine utilizes computer-aid design (CAD) to deal with a large number of unique boats with custom features. CAD technology brings a number of benefits including faster development, better products, accurate flow of information to other departments (Heizer, 2020). Therefore, Regal’s workforce is required to expertise in the use of such sophisticated technology. Regal Marine has built a core of specialists through Master

Builder Program. The program selects the expert team members to demonstrate a deep understanding for technical expertise and aptitude. Selected crafters are considered as the best in their respective focus such as assembly, upholstery, lamination, cabinet shop, or panel and harness according to Regal Marine’s website. They all have experience and perception of what and how to make an extra-ordinary boat. Adding to cost and time reduction, Regal’s official website allows customers around the world to customize their own boats or make design changes then design ideas are placed onto CAD machines to speed the development process. Regal also gets its key suppliers involved early at the design stage to improve innovation quality while speeding product development (Heizer, 2020). CAD provides the most convenient and seamless communication among customer, product, process and suppliers and thus maximizing learning among divisions. Additionally, Regal exports its products to 30 countries including Russia and China. The company establishes local dealerships to contact and support its customers globally. The official website provides the form for customers to find local Regal boats dealers who will contact them via email with current Regal news, offers and events. It is undeniable to say that Regal’s workforce with the support and help from its customers, suppliers and dealers plays a crucial role in Regal’s global strategy. (Heizer, 2020)

Reference: F. (n.d.). Why buy a Regal. Retrieved from https://www.fullperformancemarine.com/regal-boatsharrisburg-state-college-pa-hagerstown-md--why-buy-a-regal Jay, Heizer 2020 - Operations Management, Chapter 2 – Problem, Pearson etextbook. Retrieved from: https://etextise.pearson.com/courses/6339881/products/3RGUQO6SNIX/pages/a8a5a3ee15706f9bf46a3b38 09af8cfc8d8db8e1f-P70010158070000000000000000012C3? locale=&key=725271771614573590162021&iesCode=2sJG3mo0Ku Regal Marine, company website: https://www.regalboats.com Strategy at Regal Marine, Class learning material. Retrieved from: https://www.youtube.com/watch?v=24zvqPuHHTs...