Black Diamond Equipment, Ltd.

Transcription

1 Black Diamond Equipment, Ltd.

2 Company History Opened in 1989 after a group of former managers, with employee support bought assets of Chouinard Equipment from Lost Arrow Corporation during Chapter 11 bankruptcy procedure. Black Diamond Equipment The Name: owners wanted it to reflect its roots and project a fresh beginning.

3 Background December 1, Chouinard Equipment bought by employees CEO: Peter Metcalf Location: Ventura, California then moved to Salt Lake City, Utah We've devoted our energy toward the goal of creating a company which fosters the enthusiasm and dreams necessary to design and manufacture the best climbing and skiing gear in the world.

4 Mission to design, manufacture, and bring to market, in a profitable and on-time manner, innovative and technical products of high quality, high performance, and exemplary durability that are targeted toward our primary customers climbers and backcountry skiers.

5 Ten Guiding Principles 1. Being the market leader, synonymous with the sports we serve and are absolutely passionate about; 2. Having a truly global presence; 3. Supporting the specialty retailer; 4. Creating long-term partnership with companies we do business with; 5. Being very easy to do business with; 6. Being a fierce competitor with the highest ethical standards; 7. Developing sustainable, competitive advantage; 8. Sharing the company s success with its employees; 9. Creating a safe, personally fulfilling work environment for all employees; 10. Championing the preservation of and access to our mountain environments.

6 Product Line Climbing Protection Camming Devices Nuts Stoppers Pitons Piton Hammers Slings Runners Daisy chains Etriers Webbing Belay devices Carabiners Harnesses Sport climbing Alpine mountaineering Big wall Footwear Mountaineering boots Ski boots Rock-climbing shoes Ropes and Rope Bags Packs Hip Packs Backpacks Tents Snow and Ice Tools Axes Crampons Ice screws and hooks Ski Tools Skis Bindings Poles Climbing Clothing T-shirts Sweatshirts Shorts Pants Hats Belts Chalk Bags

7 Black Diamond International Operations as located on three different continents: North America Europe Asia Has distributors in over 20 different countries

8 Company s External Environment Retailers Core mountaineering shops Mom and Pop stores Sporting goods and Department store chains

9 Company s External Environment Wholesalers Consists of three different groups What group does Black Diamond Equipment fall under?

10 Company s External Environment Manufacturers There are two different types of manufacturers in Black Diamonds external environment. software hardware

11 Company s External Environment Competition among wholesalers and manufacturers Domestically Internationally

12 The Black Prophet Ice Climbing Axe Light Weight Composite Handle Innovative Style Hype

13 The Black Prophet Jeff Jamison January 1993 Black Prophet snapped What should Black Diamond do? Recall? Discontinue Axe Program? Ship Unsafe Product?

14 Business-Level Strategy Quality Products Innovative Preservation of Mountain Environment International Made in Black Diamond Strategy If you target extremists, the recreational customers will follow

15 In House Capabilities Metalworking specialization Cold forging Stamping and forming Computer Numerically Controlled Machining (CNC)

16 Subcontracting Aluminum hot-forging Investment casting Laser-cutting steel Heat-treating Welding

17 Production Facility Machine shop Punch press room CNC machines room Tumbling and polishing room Assembly room Materials and shipping

18 Inspection One person for spot-checking Quality manager informed Assembled in groups One employee responsible for quality control ISO 9000 looming

19 Quality Control Programs Finding a manager for the quality control programs. The original head of quality control had left the department Mellie Abrahamsen was selected to head the department and change their procedures in producing hiking equipment.

20 Quality Control Programs Writing down procedures Employees were used to finding the correct procedures through trial and error. Employees view themselves as being creative and wonder if these new procedures will cut down on their creativeness.

21 Quality Control Programs Employee Turnover Needing to reduce the amount of employee turnover by finding new ways to keep there employees Black Diamond has tried profit sharing and monthly financial meetings.

22 Quality Control Programs Formal Testing Developing formal testing procedures instead of testing equipment by trial and error.

23 Quality Control Programs Training Most machine shop workers are not proficient in English or math. Training will take away from production.

24 SWOT Strengths Experienced workers Innovative drive Globalization Private ownership Weaknesses New product development Lack of ISO 9000 certification

25 SWOT Opportunities Expanding Market Expanding Internationally Increase Commercial Advertising Increasing Interest in Extreme Sports Threats Legal Liabilities Environmental Threats European Outdoor Companies

26 Recommendations Improve New Product Development Total Quality Management System Eliminating Defects Expand Products Line to Snowboarding

27 Sources p#