Consolidated Engineering Co. Goes to China
Consolidated Engineering Co. Goes to China: Case
Consolidated Engineering Co. Goes to China1
Travis Maples and Penelope B. Prime
(Published in Readings and Cases in International Management: A Cross-Cultural Perspective, by David C. Thomas: Sage, 2003)
“Do I have to satisfy every set of eyes in China?” After more than a year since the contract had been signed, this was how Vice President of Operations and Project Manager, Travis Maples, felt about the deal that maybe wasn’t. He had worked hard to find a business opportunity to open the doors to China for his company, Consolidated Engineering, but now wondered if it was worth it. He knew that he could still walk away from this deal, sell the equipment somewhere else, and go on. Many companies had given too much away to do business in China, and he was not going to be one of them. The Company Consolidated Engineering Company (CEC) was one of a number of major firms worldwide that produced heat processing equipment for metals to be used primarily in engines, automotive parts, and other aluminum casting components. They produced three major product categories: 1) A continuous heat treating system; 2) ovens & furnaces; and 3) coil coating products. CEC had their own research and development division, and held 33 patents worldwide. Their major customers included Mercedes Benz, Ford, Honda, GM, Chrysler, Jaguar, VW, Kaiser, Alcoa, and Reynolds Aluminum. CEC was a privately held company established in 1959, and did approximately $35 million worth of sales in 1998. Their projects ranged from a quarter of a million dollars to 11 million or more. CEC Mission 2000
To achieve a consistent 25% growth rate by maximizing positive customer experience through continuous improvement and innovation of the highest quality thermal processing equipment and services.
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We would like to thank Volker Knoblock and Matt Westendorf for their help in preparing this case.
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Consolidated Engineering Co. Goes to China: Case
Consolidated Engineering Co. Goes to China1
Travis Maples and Penelope B. Prime
(Published in Readings and Cases in International Management: A Cross-Cultural Perspective, by David C. Thomas: Sage, 2003)
“Do I have to satisfy every set of eyes in China?” After more than a year since the contract had been signed, this was how Vice President of Operations and Project Manager, Travis Maples, felt about the deal that maybe wasn’t. He had worked hard to find a business opportunity to open the doors to China for his company, Consolidated Engineering, but now wondered if it was worth it. He knew that he could still walk away from this deal, sell the equipment somewhere else, and go on. Many companies had given too much away to do business in China, and he was not going to be one of them. The Company Consolidated Engineering Company (CEC) was one of a number of major firms worldwide that produced heat processing equipment for metals to be used primarily in engines, automotive parts, and other aluminum casting components. They produced three major product categories: 1) A continuous heat treating system; 2) ovens & furnaces; and 3) coil coating products. CEC had their own research and development division, and held 33 patents worldwide. Their major customers included Mercedes Benz, Ford, Honda, GM, Chrysler, Jaguar, VW, Kaiser, Alcoa, and Reynolds Aluminum. CEC was a privately held company established in 1959, and did approximately $35 million worth of sales in 1998. Their projects ranged from a quarter of a million dollars to 11 million or more. CEC Mission 2000
To achieve a consistent 25% growth rate by maximizing positive customer experience through continuous improvement and innovation of the highest quality thermal processing equipment and services.
1
We would like to thank Volker Knoblock and Matt Westendorf for their help in preparing this case.
1
Consolidated Engineering Co. Goes to China: Case