Midwest Lightening Inc. Case Essay

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Midwest Lighting, Inc. Case Company Description * In 2005, the profit was approximately ($144,000 / $5,500,000) 2.6% of sales; does this number indicate whether the company is doing well or not? * I like how this company’s strategic position is to offer products, lighting fixtures, to specifically meet the needs of their customers; they have identified their target consumers and have strategically positioned and marketed themselves accordingly * It’s interesting that Midwest Lighting, Inc. owns and operates every aspect of their product line; they can control the quality of their products better if they have direct access to their resources of production * Midwest Lighting, Inc. conveys the same message as Dr. Becherer:…show more content…
ting that Peterson has a business relationship with his accountant more than just relating to accounting (as stated in class is important) * It is important for Scott to have experience in different aspects of the business so that he can make well judged decisions; without experience and knowledge, the likelihood of running down a company is high * This case shows how hard it is for two people to work together for a common goal and vision when they are not on the same page; if Scott trusted and had confidence in Peterson they could succeed as a team * It is always important to know the value, strengths, and weaknesses, of a company to make proper assessments Valuing the Company * As said in class, it is important to make and keep good relationships with banks and bankers because they could make or break a company at some point * It is important to know the proper technique and method of valuing a company because different people may have different ways of assessing the value; it is also important in understanding the bank’s method of appraising and valuing a company or business Personal Financial Considerations * It all comes down to how important the business is to the individual and how badly they want to pursue the opportunity to determine if they will do whatever it takes to acquire the company; if there is no risk, then no reward but the risk and reward is unique determined by each individual * It is important to know the

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