Case Study : Diamond Chemicals Plc

The company has been functioning well in terms of generating profit and demand so far. However, there will be a 20% increase in demand for the next month of operations as predicted by management, and the production and supply management's problems may come as a problem they can no longer afford.

MTC initially needed to obtain substantial investment capital due to two main factors: a research-heavy industry, and the need to create most of the markets for its products. Although the founders' goal was to become a major manufacturing company, they did estimate that the company would need $50 million in capital before it would become self-sufficient. Their initial financing model was to first recruit a superior technical team, use that to attract additional equity investment and development funding from interested corporations, and then develop manufacturing capabilities. Commercial sales began 2.5 years after inception, and MTC is nearing the break-even point in 1990.

As we continue to move toward the end our quarterly objectives. I wanted to take the time to explain some of our costs. In our particular field of designing and manufacturing products, we are always engaging in ways that we can mitigate loss and improve our processes. Performing such changes will give a stronger presence in the market by allowing us to remain competitive.

| |iv. Service quality cost savings – Controllable and relevant – With the 6 supplier option the company saves $100,000 in|

found out that despite this cost reduction in material cost, the costs of producing the low -end units for

He argues that idle capacity is worse since it has no contribution to overheads whereas a lower price above variable costs would have some positive contribution to the fixed costs and therefore improve profitability for the division. He believes a price of $40 is insufficient to cover the total costs and that the systems division does not want to subsidize the overheads of outside buyers.

We suggest that we start the analysis process to get some ideas on the cost of renovating the EPC plant to start producing Polypropylene. This would also increase polypropylene production and possibly alleviate the 45 day shut down that is required in the original proposal. Also, it alleviates potential for the EPC plant to lay off employees if a future abandonment of that project took place. EPC employees would be retained and retrained to produce polypropylene.

The investment requested is £12 million. Strategic and operating benefits were summarized in our previous memo to you. We have made, however, some changes to our investment analyses, which appear below.

The next step would be for management to know precisely how their decision to downsize capacity would impact the firm’s future operating costs, and also identify specific areas in which the firm could achieve additional cost reductions. Additionally, the cost analysis would help forecast the firm’s operating costs and projected profits (or losses) for the upcoming fiscal year. However, before we can proceed with such analysis, an examination of how the various categories of Continental’s costs behave is in order.

Thanks to a lucky series of events, Atomic Company has enjoyed a sharp increase in sales of their Tiger Pants line. The most obvious and immediate pains being felt by management is the inability to predict future sales and the high amount being paid out in sales commissions. While these are legitimate concerns, I believe deeper problems exist.

Again, prices will be cut and reduce our company’s perceived value (Conrad “The Advantages of…”).

Peter Nicholson wishes to convert the factory in the north east to production of the electric taxi. Using data in Appendix C, Table 1, calculate payback period and the average rate of return.

Air Products and Chemicals organization is founded in 1940, provides the services to its customers in healthcare, energy, technology as well as in industrial market around the world. It has a unique large number of products, services as well as solutions like atmospheric gases, process and specialty gases, performance materials as well as chemical intermediates. It attains a good position in markets such as

The project would result in a negative NPV since the EPC market is small. Tewitt claims this negative NPV would be offset by Greystock’s renovation plan. The committee rejected the plan based on economic reasons. In my opinion, Tewitt’s plan is a waste of money to spend in something that holds a small part of the market rather, the money should be spent on something that have a high impact on the market. Also, I have my suspicions about Tewitt’s plan, mainly because of his comment to Greystock and Morris after the committee rejection. In that comment “ in a hushed voice” he told Morris and Greystock that their anuual bonuses are begged to the size of this operation. This makes me think that Tewitt’s plan has a self-interest tied to it, which presents an obvious agency problem. Therefore, I strongly reject his proposal.

Generally speaking, the legal system didn¡¦t play a very active role in this case. First of all, the India government could do more on digging the truth of the gas leak out and set a more strict standard to regulate such dangerous