Circuit Board Corporation
Case Circuit Board Corporation
Background/Introduction
Circuit Board Corporation creates and manufactures printed circuit boards. The founder, the late Dieter Adams had started Circuit Board Corporation in 1961, were the computer industry was in its introductory stages. The company started by designing and manufacturing PCB’s for minicomputer companies. Maggie Adams which was Dieter Adams beloved wife was employed as a part time employee and secretary of the board to CEO after her husband died.
Circuit Board Corporation served three segments within the computer industry market. Low-End Segment for servicing simple applications requiring one to four layer boards, Mid-Range Segment for servicing more complex applications requiring 12 to 24 layer boards, and High-End Segment for servicing the most complex applications, requiring 30 to 50 layer boards.
However the 30 million dollar company it had gone from making $1.2 million pretax in 2000 to losing $614,000 in 2001 and has been facing turmoil economically since.
Problem Recognition
An unfit Maggie was now the CEO and in charge of the company, experiencing vast declines in the company financials, and is obtaining difficult and mixed advice.
SWOT Analysis
Strengths
The company has a 4 decade long standing
The company is established
Family owned corporation
COO Ben Cashman Shed unprofitable sectors of the business and focused on midrange
The company efficiently downsized to 100 employees
Decreased wage and operation expenses by operating one shift
Recovery efforts to get paid faster
Weakness
Failure to improve the company processes
Reduction in bookings from 2.5M to 1.8M in one year and continuing
General and administrative expenses were high at 10% of sales
Negative effects of the company cash flow
Their Inventory levels were inefficient, only half were productive
CBC had no original patents
Opportunity
Process and fabrication technology investments
Smaller competitors had exited
Background/Introduction
Circuit Board Corporation creates and manufactures printed circuit boards. The founder, the late Dieter Adams had started Circuit Board Corporation in 1961, were the computer industry was in its introductory stages. The company started by designing and manufacturing PCB’s for minicomputer companies. Maggie Adams which was Dieter Adams beloved wife was employed as a part time employee and secretary of the board to CEO after her husband died.
Circuit Board Corporation served three segments within the computer industry market. Low-End Segment for servicing simple applications requiring one to four layer boards, Mid-Range Segment for servicing more complex applications requiring 12 to 24 layer boards, and High-End Segment for servicing the most complex applications, requiring 30 to 50 layer boards.
However the 30 million dollar company it had gone from making $1.2 million pretax in 2000 to losing $614,000 in 2001 and has been facing turmoil economically since.
Problem Recognition
An unfit Maggie was now the CEO and in charge of the company, experiencing vast declines in the company financials, and is obtaining difficult and mixed advice.
SWOT Analysis
Strengths
The company has a 4 decade long standing
The company is established
Family owned corporation
COO Ben Cashman Shed unprofitable sectors of the business and focused on midrange
The company efficiently downsized to 100 employees
Decreased wage and operation expenses by operating one shift
Recovery efforts to get paid faster
Weakness
Failure to improve the company processes
Reduction in bookings from 2.5M to 1.8M in one year and continuing
General and administrative expenses were high at 10% of sales
Negative effects of the company cash flow
Their Inventory levels were inefficient, only half were productive
CBC had no original patents
Opportunity
Process and fabrication technology investments
Smaller competitors had exited