BUSINESS 2257 Adept Chemical Inc..docx

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Business Administration
Business Administration 2257
Ian Dunn

Adept Chemical IncRole Mike Brock CEO of AdeptDecisions should Brock bid for the new business from CargillHow to structure the dealoAdept buys equipmentoCargill buys equipment Whether or not to hire a new salespersonoIf so should it be Adam BrockGoals Grow adepts sales and profitabilityManage cash flow problemsProvide Brock with stable income 80000Recoup initial investment over 10 yearsLeave a legacy for his childrenIndustry AnalysisCase FactsoCanadian Food and Beverage Manufacturing Industry is large and stableoAggressive investments in new and current plantsoHousehold substitution of expensive means with cheaper alternativesoHeavily regulated by various government agenciesoSlim marginsImplicationsoSlim margins mean manufacturers need to keep costs lowprice is a key factoroHeavy regulations are a threat to food manufacturersCreates a needopportunity for sanitation companiesoInvestments in new plantsupgrading equipmentOpportunity to require new contractsoLarge market with legal manufacturersNeed to focus on serviceXCompetitive Analysis Case FactsMajor competitors are EcoLab and JDHlarger and stableThe largest food manufacturers want to be supplied by the largest hygiene suppliersConsumer Analysis Case Facts Manufacturers rarely switch suppliers Consulting was a value addedIf EcoLab and JDH matched Adepts price and customers were happy with prior service those customers would not switch to AdeptImplications
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