Name: Nguyễn Dạ Thảo Linh.
Session 10 - Questions for the case "Peerless Laser Processors". Question 1: Describe the business performance of Peerless before the purchase of the state-of-the –art punch presses in 1991 and after that? (2.5 points). Answer:
In 1981, the company faced a do or die decision that forced them to use new technology. If the lasers failed, the company would have had nothing to fall back upon. There was no good economic justification available at the time upon which to base the decision. By contrast in 1984 the company had a track record with the technology, had a good feel for the market and its potential growth, and was in a much stronger position financially. Ted can be much more comfortable making this decision because of the reduction in uncertainty. The decision is harder on one way though. When the company had it’s back to the wall, it was clear that something different had to happen and quickly. When the company is in a more comfortable position, the pressure to make a decision is greatly reduced, making it easier to procrastinate.
Question 2: What factors made Ted decide to purchase three punch presses in 1991? Were these factors also what Ted considered for buying the 1,200-watt laser cutter? (2.5 pts). Answer:
The decision Ted faces now is purchase the 1200-watt laser cutter, with the decision he faced in 1991 when he was considering the three punch presses. There are some potential factors with the new laser: Peerless will be creating products that are unfamiliar to them. Peerless has no way of knowing if the new market will respond as well as the saw blade market did to the anticipated improvements in quality and cycle time coming from the laser. The new product line will require different distribution channels, different marketing techniques, and will draw new and different competition. Peerless may not be able to attract enough business to keep the system productive....
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