Pinnacle Machine Company

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Question 1 (Statement of the Problem)

Pinnacle Machine Tool Company is an example of an opportunity and a problem that needs to be examined. The CEO of Pinnacle, Don Anglos, has the opportunity to acquire Hoilman Inc. If Pinnacle Machine Tool Company acquires Hoilman Inc, they have the resources to develop software that transmits real-time information on its customers’ equipment. This advantage will enable the company to upgrade itself and be more sufficient to its customers. However, CFO and some of the senior managers on Pinnacle Machine Tool Company do not agree that gaining Hoilman Inc. is a grand idea. The CFO feels that the timing is wrong and that a negative impact on the company’s earnings will produce a negative influence upon their investors. Also, the CFO feels that it will be a mistake to get into the service business because their competitors have already begun the transition. Don Anglos must persuade the CFO and senior managers to see that acquiring Hoilman is an opportunity. Question 2(Situation Analysis)

The state of disequilibrium is between the Don Anglos, CEO of Pinnacle Machine Tool Company and the CFO of the company trying to decide whether to acquire Hoilman or not. The problem occurs when the organization profit margins were declining due to lowering prices of their products to keep customers returning. The situation begins when Don has an innovative ideal to transform the organization into a high-tech service company and the CFO does not agree stating the timing is wrong and that a negative impact on the company’s earnings will produce a negative influence. Don wants to acquire Hoilman to increase the company’s growth and transform the company. The result is Don’s uncertainty to trust his gut or follow the CFO decision. Question 3 (Development of Alternatives)

Amongst Don Anglos’s problems are several alternatives. One alternative for Don Anglos is that he should acquire Hoilman Inc., a company established by its cutting-edge...
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