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* Adamac Inc. has grown significantly to a point where the organization is unable to meet current demand and is struggling to maintain their position as a quality producer in the unstable manufacturing industry. * Adamac Inc. has the opportunity to purchase new equipment that will boost the organizations production capacity enabling them to manage the quality control of their products and in turn, provide the customers with a better service. Current Situation
The Canadian manufacturing industry has not been performing well over the last few years. Growth is slowing and the industry is essentially starting to level off. Rivalry among competition is becoming fierce and most manufacturing firms are competing based on price and in turn offering a lower quality product. Adamac has differentiated as a quality conscious producer offering excellent customer service. Adamacs’ quality conscious customers share the same values as Adamac, and also are doing well in a declining industry. With external conditions worsening in the industry Adamac must be conscious of their internal strengths to ensure they are able to maintain their position in the industry. A SWOT analysis can be viewed in Exhibit 1. Adamac currently has over 70 clients and is operating at full capacity. Adamacs’ laser cutter machine broke down 6 times last year, and the water jet machine broke down 5 times. The total cost of outsourcing this work was $10,500, the cost breakdown can be view in Exhibit 2. Quality control of their product is a...
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