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Halloran Metals

Halloran Metals operates differently than Allied in several key ways: - Halloran has multiple smaller warehouses to serve various customer demands, while Allied has one large warehouse. - Halloran carries a high number of product lines to serve its high customer base, while Allied has fewer product lines and a lower customer base. - An economic downturn would likely affect Allied more severely since its operating strategy relies on high production volumes, meaning reduced demand would drive up costs more for Allied.

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407 views5 pages

Halloran Metals

Halloran Metals operates differently than Allied in several key ways: - Halloran has multiple smaller warehouses to serve various customer demands, while Allied has one large warehouse. - Halloran carries a high number of product lines to serve its high customer base, while Allied has fewer product lines and a lower customer base. - An economic downturn would likely affect Allied more severely since its operating strategy relies on high production volumes, meaning reduced demand would drive up costs more for Allied.

Uploaded by

suraj ks
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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SUBMITTED FOR THE PARTIAL FULFILMENT OF EXECUTIVE POST

GRADUATE PROGRAM IN MANAGEMENT

Operations Strategy

Prof. Arqum Mateen

IIMK
Case Analysis of Halloran Metals

Sl. NO NAME ROLL NO

1 Deepak Balaji Hariharan EPGP – 10 – 022

2 Divakar Bothinathan EPGP – 10 – 026

3 Suraj KS EPGP – 10 – 035


1) What are the differences in logistics/operating strategy and structure between
Halloran and Allied? What impact do those differences have on the kind of businesses
they are and the way they operate?

Allied Halloran
 Single large Ware House  Multiple Warehouse to cater various
 Very Less Product line Demands and Customers
 Low Customer Base  High Number of Product Line
 Low Inventory  High Customer Base
 Integrated Fabrication in Warehouse  High Inventory
 Better Price for products due saving  Service Intensive Company
from Operational Cost
 Price Intensive Company

Down turn will impact Allied more that Halloran because Allied operating strategy is based
on high Volume production. Reduction in production due to less demand in Economic
downturn will increase their operating cost & Allied will not be able to deliver the end
product at less price
(2) What are the strengths and weakness implicit in Allied's operating stance? in
Halloran's? A priori, how would you expect an economic downturn to affect the two firms?
an upturn?

Allied’s Strength Halloran's Strength


 Low Transport Cost  Customization
 Price advantage  One day Delivery
 Low Operating Cost  Large Customer base
 Good Customer relationship
 Diversified Product
 Superior Customer Experience

Allied’s Weakness Halloran's Weakness

 Inventory Risk  High Inventory


 Insurance Safety cost  High Operating cost
 Not Flexible (full Truck Policy)  High Logistic Cost
 Long Delivery Time
 Less no. of Products
 High Safety and Insurance Cost

Economic Down turn will impact Allied more that Halloran because Allied operating strategy
is based on high Volume production. Reduction in production due to less demand in
Economic downturn will increase their operating cost & Allied will not be able to deliver the
end product at less price .During Upturn Allied will higher Advantage.

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