Executive Summary Precision Worldwide‚Inc (PWI) is a manufacturing company of industrial machines and equipment for almost 90 years. One of their plants located in Frankfurt‚ Germany‚ produces a particular model at a price ranging from $ 18‚900 to $ 28‚900. Moreover‚ the plant has another department that manufactures steel retaining rings. These rings are considered as an integrate parts of the machines they are actually manufactured. This department can sell their rings either internally or externally
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Precision Worldwide‚ Inc. RECOMMENDATION: Sell the steel rings to the current customers in the French market and inform them that the company has discovered another innovative technique that will decrease their cost and increase the wear time on the rings. Also explain that you are testing the product in other markets to determine if it is a superior product worth their time. Once the steel rings have been exhausted introduce the plastic rings. Utilize the excess labor to produce the steels rings
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Precision Worldwide‚ Inc. Case Study Case Study Background: Precision Worldwide‚ Inc. (PWI) manufactures industrial machines and equipment for sale in numerous countries. Repair and replacement parts account for a substantial part of the company’s business. The replacement part in question‚ steel rings‚ occur in the machines manufactured only in PWI’s Frankfurt Germany plant‚ but can also be used on some competitor’s machines. The steel ring manufactured by PWI has an average normal life of about
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CASE WRITE-UPS: “Precision Worldwide‚ Inc.” When a competitor develops and introduces a superior product‚ that is less costly to manufacture and even many times usable and durable‚ Hans Thorborg‚ the general manager of the German plant of Precision Worldwide‚ Inc.(PWI)‚ and his team have to decide to math the competitor’s product. When to do so‚ how to price or what sustainable competitive advantage they need to adopt during the next strategic period‚ given that they hold a large inventory‚ which
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SUBJECT: Precision Worldwide‚ Inc. RECOMMENDATION: My recommendation for Precision Worldwide‚ Inc. (PWI) is to immediately stop the production of steel rings. PWI then needs to sell the remaining steel rings to at least recoup some of their initial investment. In the meantime they should start producing‚ selling‚ and distributing plastic rings to their entire market of customers while attracting new customers who may prefer this new option. CONCLUSION: By changing their production offering to
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Precision Worldwide‚ Inc. Introduction When a competitor develops and introduces a superior product that is less costly to manufacture and even many times usable and durable‚ the key to people at Precision Worldwide must decide whether to match the competitor’s product‚ when to do so‚ how to price or what sustainable competitive advantage it needs to adopt during the next strategic period‚ given that it holds a large inventory of its now inferior product. This issue concerns the steel and plastic
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Harvard Business Case 1 - Precision World Wide‚ Inc. Managerial Accounting BUS5431‚ Spring 2015 What action should Hans Thorborg take? Why? Hans Thorborg is the general manager of a manufacturing firm‚ Precision Worldwide‚ Inc.‚ which produces steel rings for various domestic and international companies. Recently there has been a shift in the market to a new product‚ a ring made of plastic rather than steel. The new product is of a higher quality in regard to consumer concerns compared
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Precision Instruments Case Study 1. What are the different sources of Precision Instruments’ problems? After much success and high profits in their former location‚ Precision Instruments decided to move into a new‚ more luxurious location. Harold‚ who had committed the most capital during Precision’s startup‚ had developed excellent relationships with the workers‚ and always was a source of encouragement to them‚ retired. All of this‚ combined with the new building’s expenses and a downturn in
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Precision Consulting will help CanGo with an actionable market strategy. Every detail has been recommended on how CanGo should plan moving forward to take this company to the next level. Our team has put together a strategic plan to provide CanGo with system options that will improve their business work and operations. Every business should have ethics and social responsibility. CanGo should know the difference between right and wrong. Many businesses just want to make money‚ but this should not
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allows a company to determine the investment that will best increase shareholder value. With limited funds to invest in projects‚ Wyndham Worldwide must determine where best to invest. Considering the constraints of the project‚ an after-tax cash flow analysis is employed
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