Abi Case Study
CASE: AUTOMOTIVE BUILDERS, INC.: THE STANHOPE PROJECT
Jack Meredith
The following case and the answers to the questions at the end describe the stringent criteria this disguised but well-known firm uses to select among projects that offer major profit opportunities for the firm. In addition, the firm intentionally ties the criteria to their strategic goals so that each adopted project moves the organization farther in the competitive direction they have chosen by adding to their core competencies. The case also illustrates how the firm integrates their marketing, operations, engineering, and finance functions to forge a competitive advantage for the firm in the marketplace.
It was a cold, gray October day as Jim Wickes pulled his car into ABI’s corporate offices parking lot in suburban Detroit. The leaves, in yellows and browns, swirled around his feet as he walked into the wind toward the lobby. “Good morning, Mr. Wickes,” said his secretary as he came into the office. “That proposal on the Stanhope project just arrived a minute ago. It’s on your desk.” “Good morning, Debbie. Thanks. I’ve been anxious to see it.”
This was the day Jim had scheduled to review the 1986 supplemental capital request and he didn’t want any interruptions as he scrutinized the details of the flexible manufacturing project planned for Stanhope, Iowa. The Stanhope proposal, compiled by Ann Williamson, PM and managerial “champion” of this effort, looked like just the type of project to fit ABI’s new strategic plan, but there was a large element of risk in the project. Before recommending the project to Steve White, executive vice president of ABI, Jim wanted to review all the details one more time.
History of ABI
ABI started operations as the Farm Equipment Company just after the First World War. Employing new technology to produce diesel engine parts for tractors, the firm flourished with the growth of farming and became a multimillion dollar company
Jack Meredith
The following case and the answers to the questions at the end describe the stringent criteria this disguised but well-known firm uses to select among projects that offer major profit opportunities for the firm. In addition, the firm intentionally ties the criteria to their strategic goals so that each adopted project moves the organization farther in the competitive direction they have chosen by adding to their core competencies. The case also illustrates how the firm integrates their marketing, operations, engineering, and finance functions to forge a competitive advantage for the firm in the marketplace.
It was a cold, gray October day as Jim Wickes pulled his car into ABI’s corporate offices parking lot in suburban Detroit. The leaves, in yellows and browns, swirled around his feet as he walked into the wind toward the lobby. “Good morning, Mr. Wickes,” said his secretary as he came into the office. “That proposal on the Stanhope project just arrived a minute ago. It’s on your desk.” “Good morning, Debbie. Thanks. I’ve been anxious to see it.”
This was the day Jim had scheduled to review the 1986 supplemental capital request and he didn’t want any interruptions as he scrutinized the details of the flexible manufacturing project planned for Stanhope, Iowa. The Stanhope proposal, compiled by Ann Williamson, PM and managerial “champion” of this effort, looked like just the type of project to fit ABI’s new strategic plan, but there was a large element of risk in the project. Before recommending the project to Steve White, executive vice president of ABI, Jim wanted to review all the details one more time.
History of ABI
ABI started operations as the Farm Equipment Company just after the First World War. Employing new technology to produce diesel engine parts for tractors, the firm flourished with the growth of farming and became a multimillion dollar company