Industrial Equipment Case
Industrial Equipment INC.
Table of Contents
Problem Identification 1
Internal Analysis 2
Strengths 2
Weaknesses 3
External Analysis 3
Opportunities 3
Threats 4
Alternative Strategies 5
Strategy 1 5
Strategy 2 5
Strategy 3 6
Recommended Strategy 7
Implementation Plan 8
Appendix A: Gantt Chart 10
Problem Identification
Industrial Equipment INC. sold and serviced a variety of industrial equipment and related products to hospitals, nursing homes, hotels, motels and various other organizations in the four Atlantic Canadian provinces of New Brunswick, Nova Scotia, PEI and Newfoundland/Labrador. In addition to distributing a broad line of specialized equipment IE provided design, specification and planning assistance to architects, builders and owners designing new facilities or renovating existing operations. Since its inception in 2004 the company had experienced growth in sales. The main concern for the owner of IE Jon Costello is how to maintain the growth trend that the company has experienced over the first few years. Mr. Costello wants to see the business growth through expanded operations and selective acquisition. The way he perceives it, he has three options to choose from (1) expanding by purchasing Hines Equipment his father-in-law’s business an existing equipment business and his most direct competitor in the area (2) he can also expand by purchasing Metro service the sub-contraction company so it has its own service facility (3) he can purchase Quebec equipment so IE can expand its geographic reach and also enter the food services industry. Mr. Costello needs to evaluate these options to see which one of these options give him the best opportunity to grow the business in the long term.
Internal Analysis
Strengths
Jim Costello was the primary strength of the Industrial equipment. His selling ability combined with his work ethic, knowledge, and understating of the equipment business were crucial in generating and expanding sales over the
Table of Contents
Problem Identification 1
Internal Analysis 2
Strengths 2
Weaknesses 3
External Analysis 3
Opportunities 3
Threats 4
Alternative Strategies 5
Strategy 1 5
Strategy 2 5
Strategy 3 6
Recommended Strategy 7
Implementation Plan 8
Appendix A: Gantt Chart 10
Problem Identification
Industrial Equipment INC. sold and serviced a variety of industrial equipment and related products to hospitals, nursing homes, hotels, motels and various other organizations in the four Atlantic Canadian provinces of New Brunswick, Nova Scotia, PEI and Newfoundland/Labrador. In addition to distributing a broad line of specialized equipment IE provided design, specification and planning assistance to architects, builders and owners designing new facilities or renovating existing operations. Since its inception in 2004 the company had experienced growth in sales. The main concern for the owner of IE Jon Costello is how to maintain the growth trend that the company has experienced over the first few years. Mr. Costello wants to see the business growth through expanded operations and selective acquisition. The way he perceives it, he has three options to choose from (1) expanding by purchasing Hines Equipment his father-in-law’s business an existing equipment business and his most direct competitor in the area (2) he can also expand by purchasing Metro service the sub-contraction company so it has its own service facility (3) he can purchase Quebec equipment so IE can expand its geographic reach and also enter the food services industry. Mr. Costello needs to evaluate these options to see which one of these options give him the best opportunity to grow the business in the long term.
Internal Analysis
Strengths
Jim Costello was the primary strength of the Industrial equipment. His selling ability combined with his work ethic, knowledge, and understating of the equipment business were crucial in generating and expanding sales over the