4383 Case 1 CMR Enterprises
CMR, originally Mike’s Cabinets, is an architectural millwork business that competes in two different market segments: commercial and residential. In order to effectively compete in both markets, the nature of CMR’s business varies slightly between them.
Commercial business provides two-thirds of the company’s projects as well as 80% of its sales. Due to the higher volume in demand, the commercial sales force is larger than the residential sales team, which relies heavily on CMR’s showroom. The market for commercial business is larger than residential market with projections of its value at upwards of $5 billion. Commercial contracts are also harder to secure than their residential counterparts. They must be
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Marcus saw that the residential side of the business had great potential for future growth, and he knew that this was a great way to get his company involved. The additional emphasis on residential work used more of the company’s resources, but it proved to be worth it with the increased revenue and cash flows.
CMR Enterprises is confronting an issue with one of its most valuable clients, Blackstone. Blackstone as one of the biggest customers in the area, giving CMR an opportunity for immediate market share and his volume supported its goals to standardize its processes into flexible cells. They approached CMR looking for a new partner to work on a business that represented 25% of CMR’s residential business during the first year of this relationship. Sam Marcus was counting on further growth with his customer to pay his debt and fund expansion efforts. But relationships with Blackstone had become increasingly intense on residential construction.
Marcus had aggressive goals of reaching $70 million in sales by 2007 by creating a scalable and replicable business model. Moreover, build close relationship with the Blackstone will gave CMR an opportunity to standardize its business processes to be able to benefit from improved operational efficiencies that comes because of scale of operations.
However, the relationship between two companies had evolved
The case study titled “Holt Lunsford Commercial” explains how Holt Lunsford is debating how to grow his Dallas-based commercial real estate services firm and how to advise a long-time client who is wondering whether to lease or buy an industrial warehouse. The case focuses on the highly competitive and increasingly institutionalized $50 billion real estate services industry, which encompasses property management, leasing, tenant representation, and other activities. What makes Lunsford's firm, The Holt Companies, special? The article explores what corporate strategy Lunsford should choose for his firm, and what recommendation he should make to his client.
Andres Construction Services is a family-owned construction company which employs about one hundred employees. The company focuses on negotiated work on multi-family apartments, retirement communities, adaptive re-use complexes, private schools and universities, office buildings, and churches. During Mr. Whittle’s lecture, he focused on a handful of projects Andres Construction has worked on in the Dallas/Fort Worth area. These buildings include the SO.7 Shops and Lofts, The
Levitt and Sons needed to find building solutions that would suit the taste of their buyers, would be cost efficient thus resulting in an inexpensive price, and could be produced rapidly and in high yield. To solve this challenge Levitt and Sons designed a single level, four-room home based on the traditional American Cape Cod style.7 This simple design was modified to form four basic designs that were to be replicated. To produce the homes as quickly as possible Levitt and Sons based their construction strategy on the automobile assembly line of Henry Ford. Instead of moving the parts down an assembly line, Levitt and Sons move the labor along the product line.8 This method, along with the incorporation of off-the-shelf products, allowed for the rapid production of homes. The money and time saved on production and design allowed homes to sell at a lower price. These small homes
In the Thicketwood Ltd case there are a few problems and issues that need to be addressed immediately in order to keep up with demand. The current process that involves strictly human labor is no longer efficient as the demand for cabinets continues to
Compare and contrast the differing demands of leadership and management and discuss two working examples of occasions when managers have to strike a balance between these demands in order to work effectively. Where possible, use work based examples throughout.
Question 1: Describe the key aspects of Manufactured Homes’ business. Does the company have a viable business?
Question 1: Describe the key aspects of Manufactured Homes’ business. Does the company have a viable business?
Orange Creek, Inc., a Fortune 500 company, has moved into Lexington and is requesting bids for
As a hot deal in a hot market, competition among venture capital (VC) firms had driven the pre-money valuation from $17 million to $27 million, with a post-money close at $35 million. Although the Series C round had been slated for November/December 2000, Papa had noted the increasingly difficult financing environment and managed to make his funds last for 18 months, rather than the anticipated 12. The company had hit every milestone on its original plan. Its product had been installed at several marquee customers, including Tower Records and one of the world’s largest asset management companies, and it was about to be in trials at Putnam and a major investment bank—Dean Stanley Goldman Credit Partners (DSGCP). A veritable who’s who of potential customers was seriously considering the technology. Papa expected that $7 million would take his company to break-even,
The new construction market in the mid 2000’s was flourishing. People saw building a home as an opportunity for a solid investment because prices and rates were so low that certain homes could depreciate extremely slowly. However, there would be a negative effect from all this low-cost new construction and few were aware of just how devastating it would be to the new construction market.
My wife and I decided that it was time to have our kitchen remodeled. I asked family in the area to recommend me contractors for this project, no sooner did my brother tell me of Central City Builders. See, I’m a stickler when it comes to great work, and will only hire those who can live up to this standard. My brother’s word gave me all the confidence i needed in hiring this company.
Acquiring building sites in time, 40 item standard checklist , hiring right personnel to create a steady flow of customers, tying up with banks for hassle free financing, following stringent schedule, mixed model sequencing, partnering subcontractors in the process were some of the operations and supply chain practices that contributed to the company’s success.
The subject matter of the case is presented as a negotiation between a real estate developer, Hawkins, and a possible anchor tenant, Discount Marketplace. Both parties are represented by professional negotiators: Myra Hart is representing the Hawkins Company and Genia is representing the Discount Marketplace.
There are many different forms of contracts in which the CEO of a small local business could use to try to acquire business from the local Navy base. Most traditional contracts are composed of either fixed price contracts or cost reimbursement type contractual arrangements. However, a new type of contract has emerged that offers small businesses alternatives to the traditional bidding structures. The new alternatives to traditional contracts offer small business a great deal more flexibility in their design. This acts as an incentive for small businesses to bid on various contracts that they might have been uncomfortable with in previous models. The hybrid contract provides a pathway to new opportunities for small business. This paper will briefly outline some of the types of contracts available and discus how they might apply to a small business.
We understand the need for contractors to develop sound business and financial management practices and have developed numerous Contractor Colleges, and other seminars and training sessions to accommodate those needs. The Sessions created by LSC normally include a variety of instruction classes on various topics, e.g., Estimating, Marketing, Joint Ventures, Bonding and Financial Management. Through our consultative services, firms will learn supportive steps that are critical to starting, operating or expanding a successful business. They will be provided with a business/financial planning guide in addition to specific resources