See work below in description Case Study Example | Topics and Well Written Essays - 750 words

See work below in description - Case Study Example Achieving a 20% price decrement is a challenge that can lead to closure of a firm if not well planned for. Givaudan management ought to come up with various strategies that focus on reducing its overheads in the production line. For instance, adopting automation in its production system may assist the firm in achieving this objective. Both automated handling and inventory systems are effective ways of reducing labor overheads. They allow a faster and a shorter production line as they eliminate much of human involvement in the production line. Second, ERP system in the line of production is an essential aspect that allows easy, faster and less costly tracking of a firms resources and its production capacity. It also allows the firm process and communicate its information with all stakeholders at the minimum cost. A third strategy is to eliminate any brokerage aspect in the supply channel between Givaudan and Tastyco to reduce the cost of supply (Rukstad, 2014). Merging deal with the competitor is another key alternative that can deliver Givaudan from the dilemma. This entails approaching the competitor in the same business line and sign an agreement to merge the two firms to a new firms based on common securities. The deal must be a friendly, horizontal and mutual one that benefits both firms. This eliminates the competition between Givaudan and Nan Ya. In any consideration of the strategic supplier, the new merged firm will scope the position. All the benefits accrued to one firm will be mutually benefiting the two firms (Rukstad, 2014). The reduction of the overhead costs has highlighted various strategies that can help Givaudan realize the objective. An automated system in both manufacturing and handling activities requires fewer workers to operate the system. This eliminates a substantial number of workers hence reducing labor costs (Rukstad, 2014). ERP system eliminates the cost of