Ellis manufactiong company Essay Example

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Ellis Manufacturing Company

Ellis Manufacturing Company

Jonas Elis, a mechanical and an entrepreneur, started Ellis Manufacturing Company in 1937. The company majors on the manufacturing of small kitchen appliances. Moreover, the corporate offices of this company were situated in Philadelphia. The company operated four production plants in the United States, as well as, one in Canada, Mexico, and France. Each of the production plants and the fourteen national, as well as, regional sales enterprises were decentralized. Each plant and sales group was a profit center, as kitchen appliances moved from production plants to control of sales group under the coordination of two-step transfer price.

In addition, the product line of Ellis Manufacturing Company had always competitive and innovative. This company was the first manufacturer of mixers and blenders. Moreover, the company also engaged in the product line of food processors, electric can processors, toasters, and electric knives. The six products comprised over ninety percent of Ellis Manufacturing Company. Furthermore, most of the products of Ellis Manufacturing Company followed the sequence of material buying, housing, gear, and motor manufacturing, as well as assembly. These processes ensured that Ellis Manufacturing Company makes its final products efficiently (Harvard Business School, 1995).

However, the industry of small kitchen appliances includes a multitude of diverse companies that sell a wide range of various products. The firms, which competed with Ellis Manufacturing Company, were large producers of other manufactured goods such as coffee makers that Ellis Manufacturing Company did not produce. Most of the small kitchen appliance manufacturers sold to wholesalers who the sold to retailers. In this case, the biggest classes of retailers included department stores, catalog showrooms, appliance stores, as well as discount stores.

In conclusion, between year 1977 and 1987, the forecasted appliance sales were to grow from seventy-three million units to ninety-three million units. This represented an increase in industrial sales from twenty-seven percent. Small kitchen appliances were sensitive to the stability of economy as they were purchased out of discretionary, disposable income.


Harvard Business School. Ellis Manufacturing Company, Rev. May 30, 1995.