DOZIER industri
UVA-F-0745
DOZIER INDUSTRIES (A)
Richard Rothschild, the chief financial officer of Dozier Industries, returned to his office after meeting with two officers of Southeastern National Bank. He had requested the meeting to discuss financial issues related to Dozier’s first major international sales contract, which had been confirmed the previous day, January 13, 1986. Initially, Rothschild had contacted Robert Leigh, a vice president of the bank, who had primary responsibilities for Dozier’s business with Southeastern
National. Leigh, feeling that he lacked the international expertise to answer all the questions
Rothschild might raise, had suggested that John Gunn of the bank’s International Division be included. The meeting had focused on the exchange risk related to the new sales contract. Dozier’s bid of (British pounds) GBP1.175 million to install an internal security system for a large manufacturing firm in the United Kingdom had been accepted. In accordance with the contract, the British firm had transferred a 10% deposit (GBP117,500), the balance due when the system was completed. Dozier’s production vice president, Mike Miles, had assured Rothschild that there would be no difficulty in completing the project within the 90-day period stipulated in the bid. As a result, Rothschild was planning on receiving GBP1.0575 million on April 14, 1986.
Company History
Dozier Industries, a relatively young firm specializing in electronic security systems, was established in 1973 by Charles L. Dozier, who was still president and the owner of 78% of the stock.
The remaining 22% was held by other members of management. Dozier had formerly been a design engineer for a large electronics firm. In 1973 he began his own company to market security systems and began by concentrating on military sales. The company experienced rapid growth for almost a decade. But in 1982, as Dozier faced increased competition in this market, management attempted to
DOZIER INDUSTRIES (A)
Richard Rothschild, the chief financial officer of Dozier Industries, returned to his office after meeting with two officers of Southeastern National Bank. He had requested the meeting to discuss financial issues related to Dozier’s first major international sales contract, which had been confirmed the previous day, January 13, 1986. Initially, Rothschild had contacted Robert Leigh, a vice president of the bank, who had primary responsibilities for Dozier’s business with Southeastern
National. Leigh, feeling that he lacked the international expertise to answer all the questions
Rothschild might raise, had suggested that John Gunn of the bank’s International Division be included. The meeting had focused on the exchange risk related to the new sales contract. Dozier’s bid of (British pounds) GBP1.175 million to install an internal security system for a large manufacturing firm in the United Kingdom had been accepted. In accordance with the contract, the British firm had transferred a 10% deposit (GBP117,500), the balance due when the system was completed. Dozier’s production vice president, Mike Miles, had assured Rothschild that there would be no difficulty in completing the project within the 90-day period stipulated in the bid. As a result, Rothschild was planning on receiving GBP1.0575 million on April 14, 1986.
Company History
Dozier Industries, a relatively young firm specializing in electronic security systems, was established in 1973 by Charles L. Dozier, who was still president and the owner of 78% of the stock.
The remaining 22% was held by other members of management. Dozier had formerly been a design engineer for a large electronics firm. In 1973 he began his own company to market security systems and began by concentrating on military sales. The company experienced rapid growth for almost a decade. But in 1982, as Dozier faced increased competition in this market, management attempted to