Breezy Essay

1380 Words Jul 4th, 2016 6 Pages
MGT 1203 International Trade Management

Case I Overview and Rubric

Breezy Air Filters - Redefining the Business

Coming up for air

Breezy Auto Parts has been supplying the North American automobile industry with carburetors and air filters for more than half a century. With revenues of about $100 million a year, it is a significant player in the parts industry. Initially, it supplied carburetors and filters to each of the Big Three domestic manufacturers. When foreign car manufacturers entered North America to set up manufacturing operations, Breezy also developed relationships with the newcomers. It redesigned some of its products to fit the foreign models. It also introduced electronic data interchange (EDI) to support
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To avert further deterioration, the company’s CEO announced a visioning workshop for senior managers. The objective is to conduct a PESTE (political, economic, social, technological and environmental) review of current trends, factors and conditions in the marketplace while subjecting Breezy to a rigorous SWOT (strengths, weaknesses, opportunities, threats) analysis. This is the first step in a process of revitalizing the company and its prospects by developing a new vision and strategy.

Analysis to get past paralysis

At the workshop, senior managers made the following observations:

• As a supplier to the auto market, it is dependent on its fortunes, but it has little influence over broad trends such as gas prices, or even the pace at which car manufacturers decide to redesign their vehicles for fuel efficiency. That redesign process may take years but Breezy has obligations now.

• Breezy already dominates the North American market for carburetors and air filters so that there is only limited scope for expanding sales in a market that is already saturated.

• So far, Breezy had focused on carburetors and air filters, something that it does better than others and a product in which it has decisive competitive advantages. Moving into new products would require R&D and retooling and it would have to be carefully coordinated with the redesign of automobiles for fuel efficiency that is under way in the industry.

• Key to Breezy’s

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