Mak Brake Lining – Case Analysis|
Table of Contents
Mak Brake Lining Company had a licensing agreement from T&N’s subsidiary Ferodo that was due to end in two years. The main issue was that this agreement was probably not going to be renewed. Situation Analysis
Currently Mak has a more stable financial situation, but that was not always the case. At the beginning of their operation, the company incurred a net loss from 1992 till 1995. By 1996, Mak started to realize an actual profit margin. In 1997 the company realized an actual profit margin of 11% and this was accompanied by an increase in export sales. Additionally, the company was showing a lower debt to equity ratio that reached approximately 1 to 1 by 1997. Product
The company produces the following list of automotive brake system product lines: 1. Automotive disc pads
2. Commercial vehicle brake lining
4. Commercial vehicle disc pads
5. Molded roll and industrial friction
The company started to expand its activities to include exporting to international markets in 1995. By 1997, the total export sales accounted for 33% of total sold units. Mak is considered to be a market leader despite the fact that customers favor imported products. This can be attributed to producing under the international brand name from Ferodo.
The company’s competitors domestically are one public sector factory and another private sector company. However the main competition is coming from imported products.
The following table depicts Mak top management team and key players: