Essay Sample on Andrew Company: Nine Years of Broad Cost Leader Strategy

Paper Type:  Essay
Pages:  7
Wordcount:  1761 Words
Date:  2023-02-27


Andrew Company got established on December 31, 2019. Upon the initial opening, the business utilized the Broad Cost Leader Strategy. The strategy, as used in this summary, bears the importance of offering affordable products to the clients as a strategy. Anytime someone considers buying a particular product; they consider choosing the lesser expensive commodity irrespective of the price they acquire it with. It is now nine years since the business started with its central idea been the production of low priced items with large profit margins that result from the economics of scale. Such has led to the establishment of both high-tech and low-tech products.

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Since the commencement of the company, several problems in the business have been confronted, including a rotating debt. Since the firm adopted the strategy to focus on low-tech companies, the sales increased significantly and have been projected to continue moving up. The business has also invested in customer satisfaction and the production of well-researched products. The organization's fair rates in the low-tech market have changed from 48% to 84%. The objective of the business has been to focus on the costs every year while at the same time maintaining the production levels. In the coming years, the company's clear objective is growing the overall revenue.

Company SWOT Analysis


The current success in sales and product roll out at Andrews Company has positions to grow in the end. Both the high tech hand low-tech segments pose as a strength at Andrews. The Andrews Company has taken an overall dominance in the sales among the competitors. The company led the market at $241M sales with the runners up a company making over $119 M. The company's profit hits a higher mark giving enabling high revenues. The second strength is its dominance in its stock share market, with the company continually achieving higher closing prices and higher dividends. Lastly, the company maintains 100% client awareness and accessibility.


Among the identifiable flaws is the variance between production and volume. As the business advances in growth, significant resources need to be put in practice to match to meet production and other costs. The company also needs to increase its plant facilities due to the increased production capacity. The company also needs to improve on the law tech-market segment products.


The fact that Andres Company has a high customer awareness and accessibility puts the company at a better placement in introducing the low-tech fair segment. Focusing on the low-tech section will allow increased production as well as solving productivity vs. capacity problems while increasing the low-tech arena. Such a move will take down the similar companies performing lower in the market, particularly in the event of margin contribution and the criteria in buying.


The company is currently confronting dangers such as fierce competition with rivals as it becomes more popular in the market. Another big risk is the always-varying potential in raw materials prices that affects the overall pricing. Similarly, in the case of technological developments, the current system will become useless, leading to huge losses.

Future of the Company

As a routine in manufacture companies, Andrews will have to change the technology for the invention. As such, Andrews Company will have to remain aware of the developing technology for relevance in the industry. With exceeding sales and profits, the company needs to consider using the revenue to develop its technological aspects.

The company also anticipates cutting unnecessary costs. The company will identify wasteful areas in the business, such as in the manufacture where the unused equipment will be traded to generate extra income. Also, unnecessary business processes within the company will be identified and scraped off. The company will also create a financial plan to serve in managing the current monetary situations. The company also strategizes to pay its debts as a means of financing the various cost obligations. To maintain functional associations with the lenders, the company will negotiate with the creditors for better loan services and terms.

Ethical, Legal, and Social Challenges

Ethical Challenges

Ethics involves making informed decisions in a clear framework of principles and values. Ethical considerations are essential in the identification of honesty standards honed with integrity for accomplishment (Capsim, n.d). Such policies and benefits must be identified and utilized from the highest to the lowest level of leadership in an organization. The Andrews Company does not possess a clear set of official ethics and standards. As such, the company's executive must establish appropriate codes of ethics at the workplace. Ideally, as the business ventures into the low-tech market, it will need adequate ethical considerations. Similarly, the company needs a moral response in the case of comprising clients.

Legal Challenges

Considering the Andrews market position, their greatest legal challenge is associated with the monopoly laws. The company must adhere to the rules governing monopoly entities. As such, Andrews Company must take on policies enabling its right functioning within the law. The company is also required to comply with local laws such as waste management.

Social Challenges

The Andrews Company is obligated to maintain corporate social responsibility (CSR) awareness and adhere to it. Adhering to the CSR initiatives will allow the company to engage in the promotion of inward investment as well as international competition. The company will, therefore, need in addition to the employee and innovative ventures incorporate social and community investments as well.

Global Considerations

Andrews Company is determined to reach global markets and, as such, must maintain an extensive and well-organized business to suit the international market. The venture will, as such, adopt regional offices in different countries to manage the growing opportunities. By establishing the local businesses, various employees will be deployed to the given destinations. Such opportunities will require additional hiring to meet the new market demand. Also, the company will require considering monetary investment in the globalization process.

Globalization will also come with its disadvantages. Given the general availability, more finances will need to be pumped in the establishment of working facilities, employing new workers, and paperwork. The working contracts must be duly filled and all the requirements to expand business at the international level met.

Professional Reflection

Capstone Experience

My experience using Capstone felt like it was an outstanding captivating learning tool for acquiring knowledge and spreading over the business at the board structures and notions. At the beginning of round one, I was not aware of how capsicum worked, and I had to learn a few things the hard. I remember once I concluded generating two products at once. I used up the subsequent rounds doing damage control, adjusting my making levels, R&D costs, and marketing expenses. I discovered a few errors remain tough recuperating from, and any capitalist avoid settling on enduring options only if they understand the results of their actions. I applied some business concepts I learned at SNHU during my classes while using Capstone I. To deal with a business effectually; I revealed that a commerce manager must comprehend and adequately perform the following; Which market section they strategize for, how to generate their items to meet needs of the chosen market portion. Which market section they strategize for and the able market activity of organizations' things plus changing their manufacture levels to meet different requests of the customer. Enhancing implementation levels and reducing commonly measure also creating the items to be more reliable than other competing brands. Ensure keeping error-free accounting reports, which ensures the stability of organizations' money.

Some of the pointers of a financially sound institute integrate; overall net revenue (10% or even better), new proportion (1 to 1 or more), presenting procuring growth and decent cost to-profit proportion (P/E ought not to exceed over 25%) additional income (Wilkins, 2018). Human Resources give aggressive returns and return bundle to employees, offer expert organizing to increase to 70-80 hours to all representatives annually. Total Quality Organization reduces material expense, R&D fee, work cost, administrative expenses, and additional requests of items through some TQM preparations (Oster, 2016).

Business Degree Program

My business degree at SNHU will keep me ready for my forthcoming profession in Human Resources Management HRM in various ways. A HR Director responsibilities are to plot and manage the organization's employees to use their talents to maximum, connect organization's administration with its personnel, plan and administer employee value programs, aid as a professional advising other managers on human assets issues, like offering equal employment chance, organize and control the work of experts and supporting staff members, oversee a firm's enrollment, conference, choice, and employment processes, and handle enrollment issues, like interceding disputes and guiding disciplinary actions. Human resources managers, moreover, refer to top executives concerning the firms' tactical planning and talent managing problems. They detect ways to exploit the value of the organization's employees, plus ensuring that they are used resourcefully as possible. For an example, they may evaluate worker efficiency and recommend modifications to the organization's organization, which will help the organization meet financial goals (Human Resources Managers, 2018).

Peer-to-Peer/Peer to Leader Collaboration

I have confidence in the criticism I received from my colleagues on the debate questions that helped me enormously. My peer's feedback helped me realize how Capsim worked and anticipated a role in the general development of my presentation and necessary management skills on Capsim. I felt gradually encouraged and resolution to pick up a greater understanding of the money related methodologies used in Capsim the moment when my colleague's shared their combats and hitches to Capsim. Having notwithstanding the discussion questions and responses, I supposed it was useful to review and analyze colleague's outcomes on the Capsim sequences, and audit what methods they used in each respective round and connected a portion of their approaches with mine.

Notwithstanding the collective, coordinated struggle, I found out that the instructor's contribution to coursework and debate question responses to be instrumental in resolving on choices and enhancements in my Capsim sequences. Initially, I was scared of going out on a limb on Capsim. Additionally, I believe that frustrations in business may also give implausible education openings. Businesspersons should be prepared to try distinctive practices in managing their trade and continue working to a point where they learn a method that they can use in a situation where any of the businesspersons comes up short of ideas.


Human Resources Managers: Occupational Outlook Handbook. (2018). Retrieved from

Keefer, A. (2016). Pros & Cons of a Global Market Strategy. Retrieved from:

Oster, K. (2016). List of Ethical Issues in Business. Retrieved from:

Wilkins, G. (2018) 6 Basi...

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Essay Sample on Andrew Company: Nine Years of Broad Cost Leader Strategy. (2023, Feb 27). Retrieved from

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