Business Administration 2257 Study Guide - Ecolab, Cash Flow, Competitive Advantage
27 May 2014
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How to structure the deal: adept buys equipment, cargill buys equipment. Implications: factor: heavy regulations are a threat to food manufacturers. Creates a need/opportunity for sanitation companies: investments in new plants/upgrading equipment. Opportunity to require new contracts: large market with legal manufacturers. Major competitors are ecolab and jdh larger and stable. The largest food manufacturers want to be supplied by the largest hygiene suppliers. If ecolab and jdh matched adepts price and customers were happy with prior service, those customers would not switch to adept. Current sale price is a competitive advantage: must focus on specialized sanitation and customer service, personal sales approach best suited for regional manufacturers, new business would expand adept and enable to bid on larger businesses. Corporate structure: sodrox supportive, both financially and administratively, brock must obtain approval for any decisions. Human resources: brock has significant experience and industry knowledge, nearing retirement, two- full-time employees (including brock)
