Bandag Incorporated is based out of Muscatine Iowa and is a leader in the commercial tire manufacturing business. Bandag sells procure rubber products and manufacturing equipment to their franchises who retread commercial truck tires. A major aspect to the success of Bandag is their large base of national accounts including Waste Management, FAB Express, and Republic Services. These accounts are served worldwide by their franchise network. As you can tell, Bandag is on a mission to keep trucks rolling by creating and delivering the best products and services for customers (Bandag, Inc.
, 2006). Bandag Incorporated has a worldwide presence in five countries; Brazil, Canada, Europe, Mexico, and United States. They have 11 manufacturing plants in these five countries with an employee base of 3,800 members. Most of the employee base is made up of remote workers including sales people and field technicians. The president, chairman, and CEO of the company is Martin G Carver. Mr. Carver has held this position since the early 2006. With their worldwide presence comes a very interesting set of financial data.
In 2007 Bandag had revenues of 920. 9 million dollars. In the same year they reported a net profit of 49. 5 million dollars which yielded $2. 52 earnings per share. In 2006 Bandag had revenues of 868 million dollars and reported profits of $66. 9 million. This created earnings per share of $3. 39 in 2006 (Bryant, 2006). As you can tell from their financial track record, the commercial tire industry is becoming more competitive. Expenses are rising but the market will not accept any price increases. Business requirements
One major ongoing goal of Bandag is to provide the best customer service possible. National accounts are very important to Bandag’s business model and they are a major focus in the customer service department. One goal to increase customer service to national accounts includes building an interactive website. This ecommerce portal would allow national accounts to place orders, see statements, pay bills, and track production tires. The software that is currently in use in franchise production facilities is capable of populating this ecommerce portal.
However, Bandag currently does not have the network infrastructure to support it. They do not have a fast enough connection at the corporate office to support both employees and an ecommerce portal. Security remains one of the major issues in their handling payments through the E-Commerce portal. Their enterprise network marks the beginning of risk assessment and strategy formulation in implementation of EPS. Another one of Bandag’s goals is to increase productivity. They currently employ 3,800 people and would like to take their productivity to the next level.
Bandag has invested in a few key employees who have worked to cross train employees and hone their skills. However, the downtime and slow response times of their current system are creating a roadblock. This roadblock is preventing employees from achieving the highly productive workdays that are wanted. The second major technical goal is reliability. Bandag has a very large national account customer base that requires them to process many financial transactions every day.
In order to be sure their data is accurate and no transactions are lost, they need to have a high reliability network. They have had problems in the past with their internet service provider’s network going down. As a result, they implemented an offsite disaster recovery facility. However, they are still affected by network outages because the data center they are using has the same internet service provider as their corporate office. As a result, when the internet goes down at one facility, it also goes down at the other facility making all services unavailable.