Columbia Industries

677 Words Feb 7th, 2014 3 Pages
Problem Recognition
Key account lost had been lost, delays, employee complaints and employee safety concerns.
Situational Analysis
Strength: Columbia Industries, Inc. is the largest manufacturer of code-approved products to Construction industry. CI utilizes a large network of specialized distributors, supply houses, and mass merchandisers to sell its products.
Weakness: CI relies a lot on a few lift trucks that are old and often broken down. Work efficiency and business growth is being affected by its current fleet of truck lifts that under perform. Stakeholders have different criteria’s to be met which may greatly affect decision making.
Opportunity: The market demand for Columbia Industries’ products is increasing. CI has the
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The Yale lift trucks are very different in operating where time and training may be required for employees to get used to it.
Since the Yale truck is a new design, mechanics may have difficulty repairing and conducting maintenance in a timely and efficient way.
2. Pros: (Caterpillar-wise)
Ranked top for lift trucks performance and durability which is the most important concern for CI to prevent the same lift trucks problems previously.
Caterpillar’s service facility is only miles away from CI’s location where Caterpillar can provide fast and timely services if needed. Repairing parts are easily available.
The salesperson of Caterpillar has in depth knowledge about its lift trucks and knows the needs of CI.
Caterpillar’s lift truck can fulfill all requirements needed for CI to operate its business.
Warranty can be extended by discussion if needed
(Hyster-wise)
Maintaining a continuous and good relationship with Hyster
Hyster claimed that previous transmission problem has been solved in the new lift truck
CI’s mechanic is confident in repairing and conducting maintenance to new Hyster trucks
Old Hyster trucks can be traded in back to Hyster
Mixed purchasing from both Hyster and Caterpillar can reduce the risk of losses caused by lift truck malfunctions.
Cons:
Employees may need some time to get used to driving Caterpillar’s lift truck.
Price for Caterpillar lift trucks can be $2000

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