Sat & Co Analysis

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Assignment Questions (Case: SAT & CO.):
1. Why is the machine tool industry so important? How it is different from other industries? 2. What is market orientation? Is SAT & CO. is a market oriented company? Is there a relationship between the market orientation of the company and its business performance? Can this relationship be moderated by external factors? 3. What should McGuire do to achieve market orientation for the company? What are the critical success factors for the company? 4. Why are the end user’s perceptions of the company’s machines so important to McGuire? How can McGuire use this information to reduce the gap between the customer’s expectation and company’s delivery on these expectations?

Machine tool industry
* Major contributor towards maintaining existing living standards chiefly responsible for production of capital goods. * Heavy requirement in defense and automotive industry.
* Contributes towards increasing opportunities in terms of employment * Prerequisite for all tools used in the manufacturing industry * Key driver to growth for other industries

Different from other industry
* High Skilled labor required
* Wide range of applications – caters to application of multiple. Other industry focus on producing a type of product * High scope of adaptation of new technologies – Technology innovation

Marketing orientation
* Increasing Marketing effectiveness - Continuous focus and commitment of an organization towards customer needs * Collecting information from customers and utilizing information to cater to needs of a customer Sat & Co.

Not a market oriented company – Everyone does their own job * Product oriented – evolving the product without any information of customer needs * No specific information of customer needs

* Focus on delivery of service
* No integration across various units of the organization 2(a)(b) – Use reference text document

What should...
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