Although
this case study is intended to reflect in a very general sense events in the world economy in 2008 / 2009, it is
intended for educational study purposes only, not to indicate effective
or ineffective management decisions made by any persons in any real
world situation. It does not make any attempt to offer any
investment advice in any real world situation.
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Your company is a leading producer of farm tractors and road tractors, with significant market shares.
The 2 established product lines have been supplying good cash flows for some years, but maye be in need of product re-launches in the future.
A recently introduced product line in the forklift market seems to be growing well, and new opportunities are being looked at in the dynamic utility engines, circular saws, tower cranes and excavator markets. A new product line of buses may become available if your availabale investment budget rises over 310M$.
An aggressive competitor is also investigating new product launches, and a recent market research survey suggested solid growth prospects in most markets in the coming 3 years. This is an industry where the market leader has the best chance to dictate market pricing and build profitability.
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