Allen Case
1: Opportunity Evaluation:
a: How good is it?
While not been in the distribution area, Plas-Tek has characteristics that fit Allen Lane skills and objectives. Plas- Tek has gross margins in excess of 40% for a nonproprietary product. It was giving half a million a year, from a Business with a million dollars in sales. It is a gold mine. b: What is the potential (market size, growth rate, potential: company’s competitive advantage?
Market Size: Plas-Tek has over 26 year in the Business. Lets say there are 5 mayor Plas- Tek Industries the smallest has 100 preferred customers and the highest have 1000 preferred customers of 90,000. Since Plas –Tek has 300 preferred customers has market size will be around .33% of MK.
Growth Rate: While having big margins, the Management needs few changes. It could a have a constant positive growth.
Company Competitive advantage: Allen Lane and Dan Ray experience in the industry c: What is the value adding potential?
Sophisticated and experience Management. Plas Tek has the staff that can run the Business considering that they are well experience with their task. Over 25 years in the market. d: what type of margin can it offer?
40% and 35% or more. e: what is the long-tem sustainability?
Key Customers relationship. They were the ones Plas –Tek Industry was still alive. A Strong sale force that should focus in a strong relationship as they have done. f: how attractive is the industry and its stage?
Plas-Tek industry is attractive since it has large margins. It is in a maturity stage, but can also become a growth rate since every day there’s is advances in technology. Example. Green product. They can find out a plastic component that is biodegradable. This will run him again to the growth stage.
g. What Business can it create?
Biodegradable Plastic components for a green environment h: what is the stage venture and what are the risks?
Singing the contract. Already have the Money (Banks, partnership, etc. Contingent
a: How good is it?
While not been in the distribution area, Plas-Tek has characteristics that fit Allen Lane skills and objectives. Plas- Tek has gross margins in excess of 40% for a nonproprietary product. It was giving half a million a year, from a Business with a million dollars in sales. It is a gold mine. b: What is the potential (market size, growth rate, potential: company’s competitive advantage?
Market Size: Plas-Tek has over 26 year in the Business. Lets say there are 5 mayor Plas- Tek Industries the smallest has 100 preferred customers and the highest have 1000 preferred customers of 90,000. Since Plas –Tek has 300 preferred customers has market size will be around .33% of MK.
Growth Rate: While having big margins, the Management needs few changes. It could a have a constant positive growth.
Company Competitive advantage: Allen Lane and Dan Ray experience in the industry c: What is the value adding potential?
Sophisticated and experience Management. Plas Tek has the staff that can run the Business considering that they are well experience with their task. Over 25 years in the market. d: what type of margin can it offer?
40% and 35% or more. e: what is the long-tem sustainability?
Key Customers relationship. They were the ones Plas –Tek Industry was still alive. A Strong sale force that should focus in a strong relationship as they have done. f: how attractive is the industry and its stage?
Plas-Tek industry is attractive since it has large margins. It is in a maturity stage, but can also become a growth rate since every day there’s is advances in technology. Example. Green product. They can find out a plastic component that is biodegradable. This will run him again to the growth stage.
g. What Business can it create?
Biodegradable Plastic components for a green environment h: what is the stage venture and what are the risks?
Singing the contract. Already have the Money (Banks, partnership, etc. Contingent