.................................................................................. 7 Curled Metal Inc. Engineered Products Division THE PROBLEM STATEMENT Curled Metal Inc. has been given the opportunity to diversify its business portfolio. CMI had an impressive growth in revenues from $750.000 in 1991 to $55.000.000 in 2001. Strict environmental regulations in automotive sector were successfully addressed by their product Slip-Seal‚ and as consequence sales increased steadily over a decade
Premium Value added Costs Price
the CMI pads according to both the Colerick and Fazio tests. I used the data from each case to derive the number of hours of driving required to complete the job with both the asbestos and CMI pads. The difference in time to complete the job multiplied by the cost per real hours was one part of the economic value in use. The other portion was the cost of the asbestos pads for each project. Colerick Test Feet driven 15000 Hours Cost per real hr($238) x total hrs Asbestos 100 $23‚800 CMI 75 $17
Premium Price Economics Costs
BACKGROUND CMI has developed a new technology using curled metal to create pile driving pads. Compared to existing products on the market‚ these pad offer several benefits: • Faster pile driving saves contractors rental fees‚ labor expense ‚ and spreads overhead over more feet driven in a given period of time • Longer life of pads save contractors additional cost in reducing changeover time • Heat resistance further reduces changeover time‚ saving additional expenses • Safety – CMI pads do not
Premium Microeconomics Economics Time
INTRODUCTION Capital Mortgage Insurance Corporation (CMI) sells insurance to lenders protecting against mortgage default losses. They are a wholly owned subsidiary of Northwest Equipment Corporation. Following their acquisition in 1978‚ CMI’s goal has been to rebuild their business and diversify their services. Mortgage insurance is used to protect mortgage lenders (ie originators and/or underwriters) by transferring mortgage risk‚ and notably tail risk‚ from lenders to insurers. Insurers by their
Free Insurance Underwriting
CMI and CTS bring to the table their respective offer and the value of their firm. Specifically‚ CMI brings to the table an offer of $820‚000. CTS brings to the table a book value of $420‚000‚ and the goodwill of the firm. The CMI bid is for 100 percent of the ownership of the company. In addition‚ the $2 million in outstanding notes will pass through to the new company owned by CMI. Further‚ CMI will agree to retain Tom Winder as CTS’ general manager. Finally‚ CTS will be moved to the office of
Premium Negotiation Contract
Case 1: Capital Mortgage Insurance Corporation Background Capital Mortgage Insurance Corporation (CMI) is a wholly owned subsidiary of Northwest Equipment Corporation (NEC). NEC expects Frank Randall‚ company president; to build CMI into a larger more diversified financial service company. To do this Randall wants to acquire Corporate Transfer Services (CTS) a small relocation services company‚ as part of a plan for diversification. Informal discussions took place with the principal stockholders
Premium Subsidiary Parent company Corporation
Case: Curled Metal Inc. (CMI) Introduction Curled Metal Inc. originally sold metal as a finished good but has later developed its business concept to transforming metals into high value added manufactured products. Early in 2008‚ the company was about to launch a new product‚ which could revolutionize its business‚ setting a new standard in the pile-driving market: CMI cushion pads. However‚ this product launch poses key strategic issues to the company‚ ranging from assessing manufacturing capacity
Premium Marketing Costs Variable cost
Curled Metal Inc.—Finding the Perfect Price Brief Description of Company and the Situation Curled Metal Inc. (CMI) specializes in selling metal-based products to various markets. With over $55 million in annual sales (FY 2007‚ Exhibit A)‚ they’ve managed to capture 80% of the automobile industry’s market share by developing and selling a highly specialized product‚ Slip Seal‚ designed just for auto manufacturers. They’ve seen a recent slip in sales (a loss of nearly 10% from 2006 to 2007‚ Exhibit
Premium Variable cost Total cost Costs
Curled Metal Inc – Engineered Product Division Overview Cumberland Metal Industries (CMI) was a company which sold metal as raw material in other products. After the company had developed the product – Slip Seal that could meet the demanding specification of the automakers‚ it had grown rapidly over the past decade. The sales increased from $750‚000 in 1991 to over $55 million in 2007. However‚ the sales decreased from 61 million in 2006 to 55 million in 2007‚ a net decrease of 9.5%‚ the net
Premium Microeconomics Supply and demand Marketing
in the pile driving market. In order to successfully launch this product‚ we first and foremost recommend that CMI acquire a patent to prevent this product from being copied and imitated‚ thus avoiding the entry of competitors. The associated value and advantages of CMI’s metal cushion pads are evident from the results of the two comparative performance tests by Colerick and Fazio. CMI pads drove piles 33 percent faster than asbestos per hour and lasted the entire job while also eliminating the downtime
Premium Value added Pricing