Case Study: Tale of Three Tales Summary: Eliot Manufacturing produces a line of clothing directed at the young children market (ages 6-12). The company did well at first, but after the baby boom era passed, there wasn’t as many children in this age range anymore. A new market was then created for the age group of teens and young adults. They hoped the children that had purchased their clothing previously would continue to do so. However, this change did not help the company. The only reason that the company remained the same was because of inflation. They decided to cut back hiring and reduce inventories in order to increase efficiency and save money. There are 3 main functional areas of the company: marketing, finance, and production. The CEO then asked each of these areas to submit recommendations for how each functional area could cut costs and improve productivity. These are their proposals: Production: Reduce the combinations in the clothing lines. Limit the number of colors, sizes, and special options. This would increase efficiency and productivity of the
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