Case Study

Measuring Performance: Primax Company



Measuring Performance: Primax Company

Introduction

Primax Interiors Ltd manufactures furniture for the office and hotel markets. With its business concept of manufacturing furniture's, Primax is now focusing too diverse or expand their business line by entering into new business line of manufacturing bedroom furniture for household customers.

Primax with its idea of expanding business line is considering different options for expansion; such options are already taken into consideration by the board of directors of Primax by considering acquisition method of growth. With its acquisition plan the board of directors has focused on two already in businesses of similar background companies with good performance outlook but needed an upper hand on progressing in their business line. The companies are Alpha and Beta, both have a noticing financial health and both are in need of professional help of growth. Alpha and Beta both have their customers of different categories, like Alpha focuses on their loyal customers and the company is being managed by a similar group of family members who are not fully in a process of hiring skilled labors. In Beta, the company is growing at a rapid pace with loyal as well as walk-in customer with a theme of doing business in a different way.

Since our company “Primax” is focusing on expanding the business with acquisition process, the two companies will be thoroughly judge with different methods of acquisition and the final decision of acquiring will be done on the basis of the drive results.

About Alpha Company

Alpha is a well establish company with its background as a family owned business having members in all senior level positions. Alpha has a large infrastructure and a state of art designing technology. It has a fresh stock pile in their warehouse and is currently working to improve their working standards.

Problems within the Company

The company is facing a major lack of skilled labor and is currently not focusing on hiring a fresh skill people; their management is not entirely focused on the company growth, instead the senior members are focusing on retiring plans. This shows the lack of interest of members of the organization for the company. The company is facing a downturn in the sales ratio, which is an impact of high prices and economic turmoil. With Alpha's stock pile up it show the company is not having a complete management of inventory system and is facing a complete management back draw.

About Beta Company

Beta is another company which is focusing on expansion and is doing an orthodox way, by insuring a theme to attract customers by saying “piles it high, sell it cheap”. This shows the company plans of attracting customers by giving them products with cheap prices.

Problems within Company

With its growing concern of attracting customers, Beta is completely out of focus for maintenance of their customers and does not have a feed back and customer oriented team. The product quality is also low in standards and the raw material is not efficiently provided by the ...