Abc Company : A Firm That Manufactures Cedar Roofing And Siding Shingles

Review of ABC Company and the directions it is targeting. The strategy of the company is to lift the expected sales in an aggressive fashion, with the expected end target being to triple the current levels. The plan is to push sales into the targeted range of $3 million within 3 years versus the current amount which sits at $1.2 million. We will identify the perceived risk factors that may impact this aggressive strategy and its successful execution. The following will be those risk factors:

Therefore, if customers feel dis-satisfied what will happen? Unfortunately, they just leave in silence and will not allow you to know the real reason.

The firm will not remain consistent with its current reputation of delivering products as per the demands of the customer.

In attempting to convince potential customers of the perceived value of the technology, Performance Indicator provided

Roofs are one of those things we all tend to take for granted. We wake up, eat breakfast, scoot on to work, and give it little thought from day to day. Until it springs a leak! It’s like a flat tire. You can’t ignore it now, and you can’t even function without getting it repaired. And like a tire, you could technically fix it yourself, but do you really know how? Do you have the right tools? With so much riding on the quality of the repair work, why risk it? Now is the time to call your local roofing company expert.

At the urging of their Board of Directors, senior leaders at ABC approached XYZ. The conditions of the acquisition have resulted in some restructuring. ABC’s senior leadership has retained their positions; the CEO of XYZ has been named the Head of Product Development, a cabinet level position. The rest of the XYZ leadership team has been retained to complete the Product Development Division. ABC’s former Product Development leadership team accepted an early retirement package. ABC and XYZ employees have been blended into their respective departments. The leaders have pledged not to lay off any employees, but to gradually reduce staffing levels through attrition.

ABC Company is a manufacturing firm that specializes in making cedar roofing and siding shingles. The company currently has annual sales of around $1.2 million, which is a 25% increase from the previous year. The company has an aggressive growth target of reaching $3 million annual sales within the next three years. ABC Company would like to begin a new project opportunity in order to help reach the growth targets. This project involves using some of the shingle scrap materials to build cedar dollhouses. The new dollhouse product line will be able to leverage the company’s existing manufacturing facilities and current staff, but will add additional raw materials and be more time-intensive to manufacture than current products. This report will provide details about the estimated product costs, what is needed to break even on the project, and what level of return this product is expected to provide.

When taxes and bankruptcy costs are considered, a firm has an optimal financial structure determined by that particular mix of debt and equity that minimizes the firm’s cost of capital for a given level of business risk. If the business risk of new projects differs from the risk of existing projects, the optimal mix of debt and equity would change to recognize trade-offs between business and financial risks.

Confidence in management delivering greater than 25% revenue CAGR from 2016 to 2020 is widespread among investors, and ABC is expected to put forth positive cash flow during 2018.

The year of 2003 to 2008 was ABC’s remarkable period, since they really show a significant increase of their revenue and profit within this period. As the effect, their share price in the market also rocketed from A$2 per share in 2003 to A$8 per share in 2008. However, this major increase has to come along with significant increase of debt from A$20.2 million in 2002 to A$1.8 billion in 2007.

When customer expectations are not met, the impacts are opposite to the ones above. Over the last five years CBW have identified two key areas where customer expectations have changed dramatically; these areas are:

If we deliver a product to the customer whose quality creates trouble for them, this will affect their trust in us. If we betray their trust, they will not buy our products for a long time!

…How an increase or decrease in business risk alters the cost of capital, the optimal capital structure, and future budgeting decisions, and…

Customer awareness: Regularize a marketer if a product is the taken for granted result to an apparent trouble, the line of work is comparatively straight. The merely need to display the customer why a product is the best one out there. As like Bennett Hay have done with its industry.

5. How can we deliver the value of the new product to meet our customer expectation