(CASE FIFTEEN Ondina, S.A.! Salvador Carmona Luis Ferndndez-Revuelta Introduction ‘Cntin. S.A. Spain-bted manufacturer of conte, was and by Me Dred ‘aon man’ company in 1048 Onda pencpal sine Contd of ‘he denn, anlar, tnd detain of ctmetc product: Dept being ‘elie small company, Onna war verily inert ad poe let {alcomponentn-bosn The nut of dirs ite mana yt com ‘anys Tag, but boaly peaking they re ll pope under 2 tor tos deodorant. gel.shumpo, os de clog puta, aad orl ont Toe fr hs sly roe inst oundnton snd ts aw one oa few domestic option af the mutnatonal compe which eatin the Spanish as 3M Doro stp famly-zun werkop fo the manufac of sop ud de ‘ng in 102" Soo alle heed he Spaniel War L800, Me Deo ‘as rtd on fh ev permit nds labo ms lage scele t ht tines the bletae by Wester nallons af the diatarip of Coosa Panen ‘eves he operations of foreign nti nt thn Spanish come ret, ‘This toto fastened slat nce Me Dora's sale rol which lwought ena eaimen ofOndinn, SA in 1048s compeny wally owned ‘ana by odor ‘Mr Dato aas bad oustanding kil in ancatining th drat vogue ‘hocosmmticndusty- Alter esting prod! inched by compat he we sla ‘oinatna pcb astinaton oie cro hanes wel eo rade hort at a tsi grins Ho dw tev o hae sls to dig th matt tra ‘ay ofthe company, with analy alleed tates nee procs Al prod Fermulas were hat nt by Me Daron tt tetany go ‘id the actry weekshop 3th the ox orparition ofeach idaho ‘we peodaved 1965. Ondina launched ts tt sling pro a deodra lled ‘Arora nhanoed he operations of he company iy ncsssingdamatly btha os mene eceg ssl value nd protility indexes. Tie economic spl eine Me Dore’ ia of koping Sac verge lose to aot guarantee olor Cay ofthe Am nt ape pat ft sup ar invested ii et (ork matt) and phy probe nes asa in the up apd coming ‘Sponish rss) Daring the Tobe. the Setaotip of Gon! Fen enacted seine lvls ang bth t galing intratona rxgnton and te ing trig investnnt A connquens of tne ttre ae the ending fw of {orig eat nthe Spanish compte markt Onda, however, es et ‘and bythe situations opened tm aa erp ptcad art ede ‘rem wer lower tha thse ae by feign competion a 307 ha tage ‘Spemusie ain sued operations Spin Ths shopping mall spend a ‘oer Spa ad thin ura provoke «sigan chang ih consume eho {conte products could bo ely ttl Oy consumers hl) product ‘mente such ar pack dig bom eri i mrt stay. Mero the Iranian ofthe Spach scoomy tht ascampunied the pamsigation of he Conaiton of 1978 bought abou an porn opin plea or es ‘rr ited, Cann th faced vrs competition hoe eg comets "Aer eang «Maser dpe Init, Me Dorn elder son, Ovi Joins th Rosarch and Developmen Department of Ondina and seed a dept ‘ral manager The sendy dclion in Ondinas rush poston, Dal apd, ‘Suid be oly sltcued to aunher of intnal crs (og conan, ‘etal inept, teiciaey of the cla sytem for pe tng Ars ‘hly Gemisod by Me Dore, Thon, the retonsip baweor Mr Dorado ond ‘avi dtrcrated th personally and pots and pk in Narch 195 [ithe ton, Ded and Me oro glad abou! thee ofthe fx marine ‘ay rom th laters fx ar be ntl ll teams a well a he {nlite fox commaniotonsxpenoe Mr Dorado try epponed the I. Aee {gation Dovid at hee "This cae focus the oan evel of Dvds proposal to change the or Industry and market Come producs are made rom combination of diver motels which, ‘re wil ae lo, undergo» rly simple poduction proces. he Aig proces of thaw produce di not deo salsa pros tc logo bat ro on th xpi of aid dasioas. The My sac cr than consisted of luncing pructs hoe epeney anticipated, a fellowes market vopoon Ths tation, however dramatically changed in he {97a aw consgienon ofthe vopment of nsnolgis for he anal nd design of agunces inc thon, cate Companies have found lay (Cae 15:0ne as Tete 16) Oa pence pert tere pos al ee ( Siteas ‘yan cheap odesien nae rans o pitts ivi om the mathe. iy outsourcing mw mators prcnsng, csmete companies could makes ‘hl sevings. Hons th cil muses fcr shied fem pede das sci a ving Marat mach sows sharp ot hone fheviorbewoun ol at young pop seo ay thal with cnr te gnc scsi consume te ounptrs enna aw od Tit and ae vanes ov eft a avesig comput ‘the ott of Odin’ operons the Spnish ect rake was under Aloe sal number frm tug to each rele dseton ‘hanno diliver tarps to ow purchasing pone tat eo Tbe 15.0, Dometic isa icing compton ror frig eta inh at ‘Weds cansoqunce othe ind sain ote Spemch arn. Fr ampniae exporting 1. Spin, bower were cepa hgh canoe dues Malton ube speatng a Stn stro ovr sins he ‘wpatation of dividends. Tis inten mace te prio fog etateoo igh {ocompete inte Spanish marke The 1870 witnsod signet improves Inthe cust’ oad tansporalin and lectins nctwoke do wel the beaten ofthe wanam As ft oth etic ndasy es canter ‘he rte! evn ofthe deed Wa ht wierd inplametation of sew lech "olor ganic nays In th 16, he ete act sump ae ‘Shqunce at hth th lcs the demegaph gto the sco halos ‘060s antes th consumption of ei roduc we ay high ‘ew environnent, mlnatinal companies aes demeste competion, ‘ing a good nuber of tam out fhe askt. Sinton, aloes ‘undo an eagong proces of soon of dorsi me wich st ft langesied Spanish-owbed companse opting heey 108. The mht shite of Spaisi-owaed comets, amen deceased fom 0% In 1970 {a La 1080 ond thes a 30% 0, Th cme are oth ODS was che ‘trond ty seerecompaiton. Assuming lv lvl of ality, smpeton feud on ee. In odor o gun sce the increasing mu of eopynga aes maragenet ect rls, conntc companied 4 mk frst ight be cepted on Iisa tiny 23% price deren. ‘Areas of Sarr, Onin markt poston oman abet ‘he te 1. repuitin etd a te pod aly product en, In on tr the e's gia wr gr than thowe feed demote compton Ia 16s, tr Devo thug that to ioe foe tw interstionaliatien of Onda ‘neo. Th company thi ets sda fray in ai bt tou _lowuranang prt od pte estes wel an provide motion ‘Seve anton mah notional ele meer thou ei ot ‘ope otal sl scam otal noe 18 ad paket 12% in'tara Sno thn ha gra bar stall diminish, bling st wound 2% ‘ttl ale The Pai cory wae contety unprinted te ec los ion as mae on yor flr teamed operate Dang th te 1b the ae eer adapted wl othe wd vie he age sperma ‘hlas opting Spain tnd hin tum hd satay ets on Ondo sles unos oT 1a shown nomial aaj ato as). Thor result ebtaibad tn ah axpending mart, vershadowed the icresing own! poston ol malin etd aoe a 180, «mulation ca “Th ix fas by cata of prs shown i Table 193. Tete 162 Unik (1-1 ie en i venom 3 "90 Siem Ios te 19S mc aon (0-995) Production ‘As mention abv, Ondine manufrs si rn eters of prt Sorat shampoo, ea dela, pecan, Or le ‘cri approved by hs Dado, baie th compotion a miele oe ‘orisop meuse pad! formula are Lope est This proce a eet ‘Tic bese theme of mater ae say inva cto of podcton ‘olume, be Derdosoomtinen isenniod tw etmpeston af maa aod ‘hse he lr aT rai pr el Sty simple and was developed nan ey 88m, Th acy. howe lela th cacy ce withthe fees in Onn ls hu Me ‘oro decided ws mov he cnpany pies» haw, arn bung Maan tn cy ninetnenct oEOR D9i “The cry woop ean ths pana pacing wd ea (Figur 18.1 The utes lant pode ecrity or nnn acy. The rotucion pat carpio mings, whe tral er mcd {eae cola, prin), o easter mined aban spr end te ‘on aly. te fos og tie eoeren Ono fhe west ps ‘even bch rad ea th sven thug Seal pee o%e%o' | escent ai 0) ere 15 The ye ryae oes a mangement conn sscmbly plat i fonoad by sc line of operons: A Ladera, 8 (GG [Stempo) a de Coleg) Pram) F Perl Sen) Lins And are ‘an and line B, Cand De withthe oss a hgh coo ad tl Imachinery wer hl renovated afer tho move tothe new atry. Th ast Fanci nosis of puting tpt the work t-roras fem no rodton plan et ote roduc reat sch wt ad itl Qualty ot ult ino Prout tut scone one Bnised prs compl the sey procs. Intratngy howover quality contr! conc te monosing a he bys oilns of pects eodut pb nat confor to pois $i lar eek tno posibie bac pred forms neko wert by NE Dorado, ease of thse compen mpl of eustxars Frage fi “Paes lint ir srrunded by two warshouse one fr Saihad goods ad ‘he oe for component to ssrB These warchoure rn que lag and a ‘wha ago amma of tventy The move toe aw actor adits cancomitn llc om high ch vet lly troup shout en inertan dso in diet abun ance {nprodton capa a ion nn non i factory Beco she ‘own othr any calcd wt gation ofthe Spanish cosmetic mak, ‘nding underwent snes and soon proband capacity Fr the pst sve year, Ondna fae nen operting far lowe eapusty and ‘aly volume ara sequent to maka both olden new product. Although ‘het reer showed tht conser indeed ylued Ondine’ ae ay Product such» py wae dase by Devil too ety forthe span. To "ako report on Onis conte caus be dd not Know mich aot Onda cot Costing and pricing ‘Me Dado was ect sw cont aecounting dl to she daisinsthe ate bas, however he wat oced omplmen fal bing syne onl fntenaton] operon, Ons exports sagstid the stam spp orn ‘adits counting systems had ben purposaly digo to communicate in nt extel pas eg othe Spanish x autores), ul them id nt ‘lal ot data, Produ cate wore clclted on he bt of otal onsumption. Final cot wa then fase by he utr of hs rods markt onions Ondinn uno t markup dandoane 40-70% ver marl ee Bats ents higher makeup fo perfumes, 70) This rocedr fr cont fellatio wos tld it Tee 1s ad remand wt he te 1008 co 15 Onda aie Tete 154 Con ted Ao (tan 315 ae oe (sc Table 15.4, forthe ost rskdown of Aton, which crepes of Skodorat’ eat sac). Prva with this rao ofc sing ged ‘then Ondia's mrt srw stated Yo don” Ordre wu supped tbe ‘Rhein Ithoy mao lo Te Bl con gun Hower th acy Hon ‘oped ole extent on Me Dor changing dacs mal or emp {ig vol rer af Aurora wane in May case twa ped ‘a Ear bel tal cot conta, re vom dr inst Ho Wes excel oe eka intern ape ong pio 08 Ee blow a {ist Mowwve, acon om ge ting and tlt pat en expt! ‘ston of rar were cntgnt on th so th earn wi he tar wa ‘male Duving te Bet guar the a ees bla al con a igh Pb thier of rscion, At lng av Mr Dado need oct asl oars rats odes Tha undid al eax ad igh pales cept ‘mein th ast quarto This et caleltonprocdar bu som Hight on the dain o mak some uw tel house. As noted sow, wasnt pole telat te Sourcing fot podoe twee Mr Der gt cet th ula hae lis. This stot lghly changed tor Dold oie the RB depres A ‘tcl pr hijo ato seth och a en ety po th products, Accring he ound comping evens for the peasy of sie 2-189 ta yng th, arid wi a ere tM itans osha pros emus i spp Tees, he proposed tat Mr Doo autre the Tw tras aarp ‘oppure by deal ct anager oro, weer, dale th db, I angod that pada formule wae "the tary often ad eon tint Bevis cacanlone ito enh the gol of On iN Boao emer hi and Oi ii oak al ea "Alera pod of ser months, Did the tems) savor amassed ett at on th cot ctr of Onda. Pash sas of ha dt sed Hight on bath he noe to late ungrotable prt non sing et sSvings in parting expen inventary and spa tui They prepared ‘lato costing spt ‘wh nthe ma, ned o provide Me Dado ‘ith csy-toundestnd ot nfo the pls work ahr and morea0 eo moran cing sophie cow elsltions would follow. The stm canted Bray of te ‘entiation of ono cos cts + Predation pant of pee + psc pl ura) TASS lan et a). TASS plant epost smbl ite ioe 1 isan of prone ln wit) [Sic Stren otf paso. 1 Sina Loe Rc dt Phenom of th ne yt fs a hn ape (the dase ion or patito ure of pres mort company See" ttt ht costs dow md ig mae empte ours hed ots apt Lp pa ils Ona [Eng sia To 16. shows the cm unkown fr Aur wer oe "ee, hwee wet pully nnd by Mr Dro, whose tnt tae te ymtatos maby Eid nh exer to ht he {im othe new cot ssuting ystems Me Dares that On ho an sis epson nh cosets whch powcr ‘ions mt comand Til a the comme hs, wich lowe hf lathe cmc aca envionment Hell hs sr ee menting rh iosion pr nape on Toston wae) a rtp res oy oo ‘toe enon at) so anason pesca a te) oo Sieamotnee coro penne oo Sore oo tro oor con 15 Ont a imple owe nos and which in en did at cout fer Onn’ odio ‘hr he sida tho company could et survive hy sating psa dant tung mpm f te propos stony aly 106, the "sc oy gi, a ‘Sendo min hen ns a ee TUBER ASSIGNEE} 1. Arata sca cot of Onn frend aer ha barn of he ‘Span economy. Conan ont rol fH Dorada 12 How coud Onda aman on of she few Spnit-owned companies ‘parang ne cote mse? 2. Wy Onda arom down Doth a production uns nd volume hl 1827 4 Wes was he rere fx pring rode on the a of ra carl ‘enampn pa makeap! Compare he new cst ems wees 2 serene | Whchre h ndring reins or Dorado tr dow he prope ‘avon ton ncn ent