Facts: You are a manufacturer, manager of a small Midwest manufacturing job shop, (net sales $7,000,000). You have the opportunity to quote on a job for an old valuable customer, (gross sales to them $137,000). The job would possibly double your revenue from this customer. The problem is that you do not have the right manufacturing equipment for this project. The only such equipment is a used piece in Poland costs, around $150,000. (as is where is) and weigh 18,000 lbs. Should you buy it?
Considerations: The decision is easy – Yes? Or No? Obviously numerous inputs and options must be considered. What are implications of having a competitor make it for you (subcontracting)? What obstacles must be overcome in buying the equipment? What other areas of inquiry must be through out and questioned before such a costly decision is made? You must be thoroughly inquisitional and creative. “Leave no stone unturned.”
Focus on: the machine itself and its importation, your market, your competitors, your financial structure, your employees, your physical plant, your customer, your present marketing position, your product mix.
What is your marketing image? What will it be after your decision? Be very detailed in your questioning. Look at the micro and macro view of your company and the acquisition. Assume any facts that you want but be very explicit about what you have assumed
2007-09-20
07:59:15
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5 answers
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asked by
Anonymous