Essay about Allen Case
a: How good is it?
While not been in the distribution area, Plas-Tek has characteristics that fit Allen Lane skills and objectives. Plas- Tek has gross margins in excess of 40% for a nonproprietary product. It was giving half a million a year, from a Business with a million dollars in sales. It is a gold mine. b: What is the potential (market size, growth rate, potential: company’s competitive advantage?
Market Size: Plas-Tek has over 26 year in the Business. Lets say there are 5 mayor Plas- Tek Industries the smallest has 100 preferred customers and the highest have 1000 preferred customers of 90,000. Since Plas –Tek has 300 preferred customers has market size will be around .33% of MK.
Growth Rate: While …show more content…
Allen Lane has strong managerial Skills thanks to his experience. The company is running living 40% margins without any main head as Mr. Elson was. The company needs a Manager ASAP before it goes down and Allen is the person fit to be there.
a: Are financial statements reasonable?
Since it was a family own company there were many inconsistency in the financial statements since they can handle the numbers as they which. b: Are financial need adequate as presented?
Yes Allan made a retail description of the financial need. c: how mush is needed, when is the Money needed, for how long and for what uses?
$ 600,000USD will be the amount needed to buy the complete PTI. With profits ranking around 450,000 yearly (without officer salary) we can recuperate the initial investment in less than 2 years.
5: Analysis and recommendations
a: how good is the opportunity?
Allen Lane experience and knowledge in the Management Business makes him suitable work with Plas – Tek Company. Plas – Tek has the staff that would help him run the business since they already have the experience to run their task efficiently. Plas – Tek has 25 years in the Business showing that it is established and