Bennett Auto Lights PLC

<p style="line-height: 200%"><font face="Arial">Bennett Auto Lights PLC is a specialist designer and manufacturer of lighting clusters for the automotive industry, located in the West Midlands region of the UK. It has been supplying a number of Auto manufacturers with headlight and tail-light assemblies for nearly 30 years. Most of its customers have been relatively small volume, specialist manufacturers: its biggest customer, by far, was the MG Rover Group, which went into administration and ceased manufacturing in April 2005. The failure of MG Rover has had a tremendous impact on all of that group suppliers, not least Bennett, which had 50% of its manufacturing capacity dedicated to supplying this major customer.</p><br /><p> Bennett management had already begun an ambitious expansion plan to increase its capacity to allow it to compete for other major contracts in the automotive industry when the collapse of Rover was announced. The Board now considers its decision to seek other large scale manufacturing customers as somewhat prescient, given the Rover situation. They have already had to cut back manufacturing output considerably but are still maintaining production for their other customers. At the present time they are supplying the after sales market for MG Rover cars, but this is a rapidly diminishing market which further underlines the need to search out and secure new customers. </p><br /><p> New capacity is already under construction on its current site to create a state-of-the-art capability to produce lighting components on a significantly increased scale. Bennett existing manufacturing facility, on the same site, is becoming a little dated but the Board is confident that the company is producing a first class range of products and is seeking to build production back up to pre-Rover Collapse volumes just as soon as new business can be won from other auto manufacturers.</p><br /><p> Throughout its 30 year history, Bennett has concentrated sales effort on UK based companies, locating its present manufacturing facility in close proximity to the major British based auto manufacturers. It is aware, however, that the supply of components to the Auto Manufacturing industry is becoming global as companies seek the benefits of ever larger scales of production. Hence the Board expansion and modernization plans devised several years previously. The present situation has made it imperative that attention is focused on winning major new customers.</p><br /><p> The attached article (see appendix A) identifies a major recent manufacturing venture in which a car-making alliance TOPCO (Toyota, Peugeot, Citroen Automotive) has commenced to build-up production of a low cost, well specified range of cars in the Czech Republic. This project is precisely the type of venture that Bennett Auto Lights wishes to become associated with  large scale manufacturing with the prospect of long term supplier contracts. </p><br /><p> Although initial suppliers have been identified, TOPCO have made it known that they continue to look for additional, capable supply companies that can operate at the ‘cutting edge of modern supply chain management. In particular they are looking for suppliers of lighting components and are prepared to consider manufacturers from anywhere in the world that would be able to service their exacting delivery schedules.</p><br /><p> At this same time, the automobile industry is seeing production levels burgeoning in the Far East countries of India, China and Korea whilst the mature manufacturers in Europe, Japan and the USA (major companies with whom Bennett has never traded so far) continue to offer a steady market situation for the type of product of which Bennett are specialist suppliers.</p><br /><p> Bennett Board of Management has taken these factors into account and feels that changes in the Global, Automobile Industry Sector do present the opportunities that support its new capacity building decision. </p><br /><p> The Assignment Task </p><br /><p> Your task is to prepare a report for Bennett Board briefing the</font></p><br /><p><br />Credit:ivythesis.typepad.com</p><br />

Bennett Auto Lights PLC

Bennett Auto Lights PLC is a specialist designer and manufacturer of lighting clusters for the automotive industry, located in the West Mi...

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