Problem Statement: Camar Automotive Hoist (CAH) produces top quality automotive hoists. The company is currently faced with making a critical decision which may significantly effect its future operations and long term competitiveness. The president‚ Mark Camar has just received a proposal about the option to enter into the European market‚ prepared by the Camar marketing manager. Mark Camar must decide on a course of action that will maximize profits and keep risk to a minimum level. Issues:
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Camar Automotive Hoist Executive Summary Introduction: With the advent of the Free Trade Agreement in 1989‚ the duties on hoists between the two countries were phased out over a 10-year period; by 1999 exports and imports of hoists were duty-free. Camar Automotive Hoist (CAH) manufactured surface automotive hoists‚ a product used by garages‚ service stations‚ and other repair shops to lift cars for servicing. In 1999‚ CAH had sold 1‚054 hoists and had sales of $9‚708‚000 about 60 percent of sale
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The licensing contract is only three years‚ the Bar Maisse is not famous‚ and the sales is difficult to be estimated‚ therefore‚ we suspect if licensing could meet the expectation of rapid growth. The cost of licensing is lower in comparison to joint venture and direct investment‚ but the royalty is only 5% of gross sales. The growth of CAH might not be significant. Besides‚ CAH will have no control of operation and reputation if they choose ¡§licensing¡¨ option. Joint venture might be
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equal share in the company’s investment and profits. - Direct investment where CAH would establish a manufacturing facility and set up a management group to market the lift. Analysis of each of the alternatives: *Within in the United States competition was intense with a total of sixteen companies competing in the automotive lift market in North America. The industry was dominated by two large U.S. firms‚ AHV Lifts and Berne Manufacturing who together held approximately 60% of the market. * Licensing
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– Jolson Automotive Hoist Problem: How should Jolson Automotive increase its sales. Alternatives: 1. Do nothing. 2. Get U.S. Wholesalers to “push” the Jolson Lift and establish NY sales office. 3. Enter into a licensing option with French firm Bar Maisse. 4. Enter into a joint venture with Bar Maisse. 5. Directly invest in the German market without the help of Bar Maisse. Recommendation: Alt. 1 (Do nothing) --- REJECT: Mark Jolson wants to expand‚ he just doesn’t know where. Alt
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Executive Summary Camar Automotive Hoist has built its reputation on a quality product in the Canadian market however in 2000 the company is facing the problem of sustaining future growth of its business. In an attempt to address this need of sustaining growth we recommend that Camar Automotive Hoist clearly defines its position as a safe and convenient scissor lift producer on international wheel alignment markets; and transfers its focus mainly on the US and the European Union markets. Our suggestion
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Automotive Aftermarket Analysis Industry Definition The automotive aftermarket is a large contributor to the U.S. economy employing nearly 4.6 million people. New replacement automotive parts such as alternators‚ brakes‚ lights‚ bumpers‚ fenders‚ and so on‚ are parts referred to as “aftermarket” or “functionally equivalent” parts when made by a company other than the original car manufacturer (Ford‚ Chrysler‚ Chevrolet‚ and others). This industry sells automotive parts and other products used
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Kimbell 3/25/13 MK 4900 Jolson Automotive Hoist‚ Inc. Case I. Situation Analysis Industry Size of Industry - Sales Dollars/Units About 49‚000 hoists are sold each year in North America The price of a single hoist ranges from $3‚000 to $15‚000 making the purchase a capital investment o Using these price ranges‚ total industry sales can be estimated at $147‚000‚000 (if each hoist is $3‚000) to $735‚000‚000 (if each hoist is $15‚000) Hoists are purchased by automotive outlets that service and repair
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CHANGE ON AUTOMOTIVE BUSINESS Climate change has been one of the most discussed issues in these modern days. It is prove on many researches that the increase in man-made green house gas emission can significantly affect the climate in the world‚ on every part of the globe. In the last few years‚ climate change has become the most researched subject in science. The reason is that because climate change can affect significantly to the earth and it has to be taken care of. In a business world‚ particularly
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External Analysis of The Automobile Industry The automobile industry is an extremely large and complex industry that is made up of many different businesses that all share a part in the manufacturing‚ sale‚ service and financing of automobiles. This industry makes up a large part of the United States economy as well as the world economy‚ and therefore is important to understand. To understand the automotive industry it is best to look at the industry‚ market‚ and competition that shapes it.
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